Yes. Equity in land you already own counts as your down payment on a construction loan. The lender credits the lot's value toward the total project, and the loan is underwritten much like a refinance. If your land equity is large enough relative to the loan-to-value requirement, you may bring no additional cash at all. The question is how the land's value stacks up against the total project cost, meaning land plus construction: - If you bought the lot cheap or still owe money on it, the credited equity may fall short of the required down payment, and you make up the difference in cash. - If the lot is worth a lot relative to the build, that equity can carry most or all of the requirement. Construction lending guidelines and loan-to-value limits vary by lender and program, so confirm the specifics before counting on an exact number. The mechanism itself is simple: your land equity counts, and it directly reduces the cash you need at closing.