Mary finally is building that dream home in the country on the five acres she has owned for seven years. Can she use the equity in the land in lieu of cash for a down payment on a construction loan?
1) No, she must get a loan against the land for the down payment
2) No, land may never be used in lieu of a down payment
3) Yes, regardless of whether the land is free and clear, as long as there is enough equity
4) Yes, but only if there are no liens against the land