I did not have an answer, i come to ask you please lets set forums for the builder and express your absolute correct and rightful frustration.As the transactional broker im limited to what i can do.

Is the only way to pay for a Reno for my childhood home to sell my current home or is there a method I'm not familiar with that I can use my current homes value to help me out??

When we order the appraisal everything will come up so it will need to be listed correctly or else the 1007 will come in low.3.

Am I reding this all correct.

Yes, that is correct.

Agree Google nmls - funny on Facebook where 99% of private lending groups that are public are scam artists you get the "well license isn't required"I reply to this noting that while you are correct in some states - chances of a scammer with a nmls license are less than 1% while those without is 99% on sociale media 

Quote from @Samuel Pavlovcik: @Nicolas Tow Your Architect is correct that it sounds like the only option for you would be to obtain a Zoning Map Amendment to change to RT3.5 or higher.

What methods of investing are you looking to do?

He is correct that a single ADU in a single family zoned area is unlikely to return as much as the hands off cost and is one of many reasons that adding a single ADU in most single family areas is not a good re investment.  

This method is simple but not precise.