New Construction for permanent residence

[Caryn Marion]

Hey community. I'll try to make a long story short. We currently have 5 acres with an occupied mobile home that we owe $35k. We signed a contract with a local reputable builder for a new home in August. Base price of home is $207k, we've added $43k worth of upgrades. They referred us to a mortgage lender that sent our loan through as USDA (we're in a rural area). The loan was approved, so the builder submitted the permits, survey, appraisal, etc. (The USDA appraisal came in at $314k, (GREAT enough for the new mortgage & pay off the existing!)) When we were scheduled to have our pre-construction meeting, the builder called & said "we have a problem, call the lender". I called immediately. He said "so sorry, you guys will be over the income amount to qualify for this loan." WHAT?!?! How did he not project that?!?! He referred us to another lender. This lender has tried FHA (loan approved, but appraisal came in at $265k, too low for mortgage & payoff), USDA for the 2nd time, that would've paid off the land, but won't because of the mobile home. He tried conventional today and that came back as a risk because our scores are both in the 650/660 range. I'm at a loss. I emailed my bank today that holds the loan for the land combo to see if I can refinance to get the title of the mobile home in hand & just have it conform to a land loan. I asked about a co-signer, but that won't help because we have the income. Do any Lenders out here have ANY suggestions?