Construction Loan - Structured Right?

[Alex Brandt]

Hello, i am applying for a construction loan and it doesnt add up for me. Background: On August 15, 2016 I bought two lots for $5k each. Each lots are 1/4 an acre with stubbed out city water/sewer, gas, and high speed cable internet with sidewalks and paved street. The lender is making me wait one year before I can use the appraised value of $30k for one of the lots instead of my purchase price of $5k which is fine. The lender ordered an apprasial and the total appraised value came in at 170k (30k for land, 140k for home) I am under contract with the builder and have a build cost of 121k for a 1100 sq ft 3bed and 2bath home. The lender says that they have to use my $30k lot value plus the $121k build cost for a total aquistion cost of $151k as the purchase price which doesnt make sense since I already own the lot. They say they cant use the 170k appraisal since the acquisition costs are lower and they go off the lesser of the two. To me the acquisition costs should be $121k with my $30k lot value as a downpayment on the $121k. Can someone explain to me why my lot with a $30k value is being used in the acquisition cost when I already own it? I got quotes from other lenders using the apprasial my lender ordered and supporting documents and they didnt use the lot as part of the acquistion cost so that raised a red flag for me that my lender may not have structured my loan right. My loan officer with the lender is going to contact underwriting tomorrow to make sure they have to include the lot as an acquistion cost but I just need other people's experience as I think something is not right.

[Jared Rine]

@Alex Brandt...hopefully I"m not misunderstanding your post, but from what I'm reading, your bank is taking into account the $30k into the acquisition costs, but they aren't counting it as part of your equity/down payment in the deal? 

If this is a bank that regularly does construction loans, that doesn't sound right, but maybe there is a miscommunication.  I regularly place ground-up construction loans and while the land cost has to be factored into the deal and into the full costs, if the borrower has owned the land for a seasoned amount of time, and it's free/clear, then it's taken into account as equity (or a portion of) in the deal.