It does not really work that way.
I have had several, and have one now.
The loan amount is based on your construction cost, not land value and not appraised value, but how much you will be spending.
You need to pay your share up front. Typically it is a 75/25 slit, but you have a 65/35 split.
If the total construction cost is going to be 500K, for example, you need to make a down payment to the bank of 175,000 before they will loan you the rest. You receive the loan in increments, and only pay interest on what you have spent already. The bank releases the increments in stages, as various parts of your construction are completed.
From experience I can tell you to pad your projected costs by 10-15%, or you will end up paying more out of pocket then the 175k. No matter what something always costs more then you thought. Or it rains. Or material is stolen.