Hi there! I used the USDA Direct construction to mortgage loan program though my situation is a little different than what you're looking at doing. My brother deeded an acre of his land to me and I purchased a new manufactured home to go on it. Because I was including the land as equity toward the loan and the home was not yet built, they started the mortgage process as a construction loan and once it was built, delivered and connected to utilities, it was converted to a mortgage. The process was almost invsible except that I was required to sign 2 sets of closing documents, one prior to ordering the home and the second to close the final mortgage loan. As to your ability to secure enough money to purchase the land and custom home you want, my suggestion is to ask the USDA to assign an area specialist to work with you in determining not only what you can afford but also how much the USDA will approve. The basic way it works is that once you decide on a piece of property and the home design you want, USDA performs an appraisal and the appraised value has to exceed the loan amount or you will have to make up any shortage out of you own pockets. The second scenario is what happened to me. To get all of the options I really wanted in the home itself like extra insulation, 6" thick walls, Extra wiring and bracing for future ceiling fan installations, extra large tiled shower, etc. I had to pay for items like fencing and carport out of my pocket. Otherwise, I could have rolled those items into the mortgage. I don't know how things are in the Pearland area (I used to live in Rosharon many moons ago) but where I am now, in far north Texas, it was a lengthy, tedious process going through USDA Direct because you have to do all or more of the legwork yourself. It took me over a year from start to move in. There were times that I felt like giving up and renting again but in the long run, I'm glad I did it the way I did because I was able to get a lot more house than I would have through any other loan method. I am not on here very often since I am now living in my home but if I can answer any questions, please don't hesitate to ask. Just make sure you reply directly to this post so I am notified via email. Good luck to you! I hope it all works out for you and your family.
