Using equity in land, as downpayment to build???

Hi guys,

I was told by a mortgage broker that he could work a deal where he could use the equity in a lot that i own in SW FL, as a downpayment to start building on that lot. Now I’ve only been on deed for about 2 weeks, and the lot is selling now for about $10-$20K more than I paid for it. Has anyone done this before? Does this sound feasible?

I don’t want to get taken for a ride. Thanks in advance for any feedback guys!

Yes, I have done this several times. So, if the lot is worth, say, $10K, and the house will cost an additional $90K to build, then the $10K would count as 10% down based on the completed value of $100K.