.- you or your spouse can qualify as RE professional and the limits the OP discussed do not apply- you can use the “STR loophole” (terrible name) to not have the limits the OP Discussed apply  - a derivative of the STR loophole that for lack of better name I will call the MTR loophole will let you provide amenities to not have the limit the OP discussed apply.I suspect there are many more.  

I don't have financing for lack of trying....I have been working on financing for the last 9 months or so....I have been struggling for all the reasons you outlined and am not willing to walk away so am paying out of pocket to get this across the finish line. 

Do you see the lack of fact/data based decision making here? 

Lacking the capital and building experience to develop it ourselves, we want to offer the backyard as a "Developer Special" on the MLS.We’d rather not risk demolishing our home at the front of the lot.

what I'm telling people about hilltop is the only reason it's going up is because of the average housing price in columbus being pushed and the lack of inventory. when I started I'd have bought here too. if I was going to invest here I'd look at houses built after 1947 without knob and tube wiring, etc. the old housing is the problem. we are building now in downtown adjacent. land is a buyer's market and it's much less competitive and easy to get the numbers to work. there is very little construction in 43204 and I've transitioned to new construction triplex now with entitlement and larger multifamily projects feel free to message or call anytime. personally, l like new construction in 43203, 43205, 43206, 43223, 43222 right now and obviously 43215 which you have to have at least 600k in cash to get the land to entitle and want to build at least 100 units to make it worth it. 

Personally, give it this thread, I'd be more concerned about your lack of experience than just about the costs.This is a big undertaking for a first project, and not only will you likely deal with complex budgeting issues, but you'll also deal with a complex build and regulation that is for more complicated than your typical single family development.

In April, shopped around a bit with a different agency, but they couldn’t find a cheaper rate.

Depending on what they say would influence the next steps.....also send a letter/email something in writing to the PM detailing the lack of response and the contract you have with them.

It’ll help with the lack of affordable housing so maybe the city would play ball?

Do you have any statistics for me on what the likelyhood is for a USDA loan to be called versus any other agency?