Direct answer

Potentially. Eligible land equity may contribute to the transaction, while any lot loan or lien may need to be paid through the construction closing. The lender reviews land value, ownership history, plans, specifications, budget, builder, permits, contingency, appraisal, and borrower qualification.

Do not assume the entire purchase price or current estimated value becomes usable equity. The calculation follows the appraisal, lien position, program, and lender requirements.

What does this mean for a Northeast Florida buyer?

In Northeast Florida, the answer should be tested against the builder's actual contract, community, expected completion range, taxes, insurance, HOA or CDD obligations, and the buyer's current approval. Jacksonville, St. Johns, Clay, Nassau, and Flagler County transactions do not share one universal cost or timeline.

Primary sources

Where can you verify the framework?

  1. Appraisal of Improvements and New ConstructionFannie Mae Selling Guide · Accessed August 13, 2026
  2. Closing Disclosure explainerConsumer Financial Protection Bureau · Accessed August 13, 2026