Converting construction loan to conventional

[Jeff B.]

I just got a call from my lender saying that I'm going to have to bring an additional $2k to the closing table when I refi out of my construction loan and into a conventional. He said it is because they will only lend 75% of the "value with improvements". They are taking the value as the original loan balance (63800 in my instance) plus improvements (18389) for a value of 81889. The house just appraised at 112k (their appraiser), so I was surprised they came back with this requirement.

They said that since the loan is less than 1 yr old, they are required to do this. Is this normal??? I'm tempted to let it ride on the current construction loan (if possible) and save the 2k. However, I may end up getting screwed on the interest rates if I wait too long. I'm getting a 5% conventional for it. It's currently a 3.99% construction loan.