Construction loan on owner financed land

[Amanda Salvatore]

Hello! We’re in the process of purchasing land from my mom using owner financing. We plan to start building our primary residence using cash to pay as we go (we own a construction company). We’d like to still get a construction loan as a backup so our funds aren’t tied up or we run out of cash. Will a bank approve a construction loan in this scenario where we have a separate loan on the land? My mom is refusing to charge us interest on the land, which is the only reason we’re not wanting a land+construction loan.