re: Construction loan finance question???

As I understand it; say you are building a $500k home. This 500k value will be the appraisal pre build of the house and property together. Depending on your income and credit situation the bank will want some amount down. Let's say 10%. So you need either 50k down or you need 50k worth of equity in the property you own. Or you need 25k in cash if you only have 25k in equity.