Newsflash: Land loan not accepted for the land which has semi habitable house on it .

Trying to get lot loan to buy a lot which has leaky roof house on it in wa. I have approvals for land loan.The lender told me that they can not give me lot loan for this property because it has house on it and even the roof is leaky it look habitable .I agree it is habitable too. But the I don’t agree is I am trying to buy lot and going to get appraisal over the lot not the lot and improvements on it. So I ask this to my lender and he replied with this quote from his guidelines and he said this is why he can not provide lot loan for that property.here is the snippet from his lending guidelines “Lots may not have habitable structures where occupants could reside, lots may have other buildings (barns, shops, sheds)” … This may look weird to me this quote looks doesn’t limit me to having a habitable or non habitable house on land . Am I right ? Or this sentence clearly says can not have habitable home on it. My English level may not be enough to understand this. According to legal English, what does this quote mean? If it clearly says that it cannot have a habitable structure, why the hell are they using ‘may,’ which seems probabilistic to me? They could use CANNOT or MuSt not or prohibited then it would be more clear.