Possible to utilize the equity in a home for reconstruction.

[Patrick K.]

Hi all, 

just thinking if it would be possible to somehow utilize the equity in a home to pay for extensive reconstruction, i.e. tear down and rebuild?

I understand lenders usually require a full payout before the construction begins. so basically I have to go into the project with no mortgage on the house + a construction loan?

Is this accurate? 

thank you for your time.