Id keep looking if it was not an approved short sale ( even an approved short sale takes a very very long time and theres no guarantee that you will even close on the house after months of waiting). q1)There are plenty of non traditional lenders that could offer you construction financing if the numbers make sense but it will cost you with points and a higher rate.

.- Large remodels or construction projects (Live in Flip) can be self-managed, worked on directly, and the value add, after 2 years, is largely tax free up to certain limits. - Many areas around the country allow for ADU Construction - house-hackers enjoy similar benefits to remodeling projects by being naturally on-site for ADU construction. 

To fully illustrate this, there was a poster who was looking for 100% financing for construction in Philly but also wanted the lender to advance costs for the initial phases of construction.

I think you've forgotten about the concept of Constructive Receipt. 

New construction can offer many incentives for interest rate buy downs.

I'm a real estate investor specializing in STR properties, a realtor, and I own a construction company.

Also look at pricing softwares and adjust accordingly.

@Rosmery ThenMy partner and I are in the same situation, just he has 20 years of construction and development experience.

Can you do contracting work on properties and learn valuable skills that will help you remodel properties, flip them, or otherwise learn as much as possible about the construction trade? 

They construct lies so deep that I truly think they believe them as real.