Construction to FHA or USDA loan help neededMy wife and I are looking to build our next home in a rural area and need financing advice. We're getting different stories from each bank/mortgage company we talk with and it's becoming quite frustrating.The home we are currently in is under water by around $10k and financed through an FHA loan (8 years in). We are considering renting it out in order to move on to the our next home. The total cost for the next home will be around $180K with the lot included in that total price. We would like to utilize the FHA or USDA loan program again if possible due to my credit score (unless someone has a better option). We've been told that we could not have two FHA loans at the same time unless we meet certain criteria that we do not at the moment. (We did have a mortgage broker insist that he could finance us with the two FHA loans even without meeting those criteria, but only on an existing structure as he does not deal in construction loans.)Our builder will not carry the loan or costs of construction during the process, so that is out of the question. The same mortgage broker mentioned above stated we could also count the income generated by the rental as income so long as we had a signed lease agreement. Others have told me this is not true.Here's a bit of info to help:- Middle credit score of 684- Total gross monthly income: ~$5,400- Current DTI: 28%- Cash available: ~$13,000Anyone have any advice on how to make this work? Should we refinance our existing home OUT of an FHA loan? Is there a better option for the new home instead of an FHA loan? We really need this to happen within this current year. Thanks!April 16 2013 - Euclid00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.