Lot as a down payment for new home build
We purchased a lot recently for $75,000 cash, however the cash was paid by my parents since we have a high income but are paying off a business that i am buying from my parents so cash flow is very poor until the end of the year. We figured if they paid cash for the lot we could use that as the down payment for the new home($360,000-$425,000 build price) and not have to save up $60,000 for a down payment with reserves. With prices in our area drastically rising on home building and lots raising in price like crazy it was a great decision to buy the lot but now we need to know how long we have to wait until we can go to the bank and get a new construction loan without them asking how we paid for the lot?
One bank I talked to does 90% LTV loans so if the house + lot is $500,000 once completed the lot(which is now comping out at around $100,000) is just about 20% down. But I can't ask them how long I need to wait because then it might raise red flags and we won't get our loan.