Equity line on rental house for building funds

[Bobbie Bebereia]

We have a small house that we have had twelve years in Yamhill, OR that has been a rental. It was on a double lot that we have partitioned and are in the process of building a house on that. We own the first house and the build able lot free and clear. a recent appraisal valued the small house at 140k and the lot is valued at about 65k conservative . We would like to get a Equity line on the existing home for 80% in order to build the second house, at which time we would refi it when it is completed (with a 220k+ value). Contacted local small bank and they will not fund on the existing house because it is on post/pier foundation...although solid. Any recommendations on another bank that will do a equity line on a rental property like this? Or we are open to suggestions on a better way to fund this. We are having HiLine homes do the building and have already given them a 15k deposit so we have quite a bit of skin in the project with that and owning the lot outright. Advice? Would appreciate any help! Thanks!