20% part of Holding

[Rick Turman]

BP Family,

I have a question that has been killing me.  It may be dumb, however I need to have a warm and fuzzy as I am unclear how to calculate this and am loosing sleep.  I've had an 80/20 Construction loan for a previous flip and looking to get into an 80/20 Note 12-1 within the next few days.  Are you to calculate your 20% down into holding, or does it somehow get factored into the proceeds when paying back the loan.  I didn't factor this into my holding costs in my previous flip and am wondering if I made a mistake.  Here is my current situation:

HUD Home

Purchase Asking Price: 87,000 (Min net would leave me to believe 87 is needed to purchase)
Rehab Costs: 45,000
Holding 25,000
Sales Price 179,900
Profit set for 23,000

HUD is asking 10% for EMD
Lender asking 20% however EMD is applied to this 20% as Down Payment

Am I missing something here? Looking forward to your responses.  I haven't pulled the trigger yet on any contracts nor has or offer been accepted yet at 80K.