Hi All, We currently have a piece of land valued at approx 40k. We want to get a construction loan to build on it. Building cost with be 150-180k. We currently only have approx 22k equity in another property that we can extract. I believe the deposit required is relatively high due to the land being in a high risk area. My question is... I assumed that the deposit required would be based on what we wanted to borrow, say 150k, but we were told that it is in fact based on the expected value of the property once it is built - which will be around 260k. This obviously brings the deposit required up quite significantly. Does this make sense, and can anyone she some light on how this works. Any info would be greatly appreciated!