OK, I'm getting ready to undergo a new construction. I'm considering using a $180K HELOC on my first home and $120K cash to buy the land since actual construction may not start for a year or more, and $300K will be needed for the actual construction which will be financed construction-to-perm when the time comes. It's a duplex in a county that has a high borrowing limit for conforming loans. In the end, at closing, I want $480K of the 600K total financed throught the mortgage (80% LTV). My ?: What happens at closing? Does the mortgage lender reimburse me the $180K portion of the HELOC money I used up front so that I can then pay that portion off, or does the mortgage lender directly pay the HELOC provider? Thank in advance, any advice is appreciated.