Only problem is spending $200,000 when building a house does not necessarily translate into an equal appraisal.  Ran into that when we put up our house in 97.

Bank will require your blueprints to be sent to an appraiser of their choice (not tax appraiser).  He will come up with the final worth of house and land together.  We added a new septic tank and drain field in the mortgage and that may have skewed the results.