Hi All. We’re building our retirement home in Vermont, but we’re having an issue with financing. Not because we can’t qualify, that’s no problem – our financials are fine. But while we could get a loan to buy an existing home in ten minutes, construction loans are harder. And for various reasons, the construction loan programs offered by the USDA and FHA have some very attractive features. We believe we qualify, and would love to get one of those. Trouble is, despite being widely advertised online, so far we have had zero luck finding a lending institution that actually offers those programs in Vermont – or anywhere else! I’ve spent countless hours on the net searching, and YES, I even called and spoke with the local USDA office, which could not point me at any lenders they knew of. But the result is always the same: “we don’t offer USDA or FHA construction loans in Vermont”.
I guess we may have to just give up and write those off as mythical since they don’t seem to actually exist, despite a lot of talk online. It’s easy to find information about the programs, there are a bunch of different web sites that describe them, but no places that actually DO them. When you click on “hook me up!” you get redirected to sites that just do regular home purchase loans. But it seems odd to me that such big government programs would have NO lenders – ZERO – participating in the whole country. There must be at least a few, right? So I thought I’d try one last thing and ask here. Does anyone here have, or know of anyone who has, a USDA or FHA *CONSTRUCTION* loan? Some places participate, but only for buying existing homes, not building new ones, despite the fact that both types explicitly say they can be used for construction. Any pointers to people or institutions would be welcome. If we have to give up on those and go with a more traditional one I guess that’s what we will have to do, but one last shot here to see if in fact any of these loans have ever been done anywhere in Vermont and if so, who does them? Or even a national lender? Thanks!!