Construction Loan Refi

[David F.]

I'm building a new home on a lot I inherited. I'm financing the construction with a construction loan. I intend to refinance that with a traditional mortgage through a different lender. Would this second loan be considered a refinance or a new home purchase loan? Reason being, it helps me if it's a refi because of a better LTV, and I won't need a down payment. It will cost me $250K to build and should appraise for $450K. If its considered a new purchase I would still have to have a down payment on the $250K. Thanks in advance.