But these are still new and could be rejected by a lender. 

I already teamed up with a home builder and private lender. 

I gave them a lease in person to review and sign (I gave them the lease first as they mostly speak Spanish and the lease is in English, so I wanted to give them the time to read it).

Our "lenders" are family who will lend to us a 25% down payment on the first property we buy at a rate comparable to a high interest savings account, so 4-5%.

As you know a foreclosures is a legal way for the lender to take over the property and sell it. 

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@Richard Edgar doing a cash out loan on land is EXTREMELY hard...I might even say impossible...but I can't speak for every lender in the country on this though. 

You just need to work with the lender and show that you can afford a down payment and the monthly payments. 

Are  there  any lenders  out  there that can help me with some clarification?

The IRS considers it a loan, just like any other, that represents potential interest income to the lender (in this case, you).