Guess it wasn’t worth that much effort to them.

Its proven to be more cost effective than dealing with a broker who normally needs to charge a fee to get a loan done, and has also proven to be way more cost effective comparably to the depository institutions we've all known to love throughout the years who usually have their attention and efforts spread over a broad range of financial services.

The main lenders offering such loans will generally want to lend in excess of $50K in order to make it worth their time and effort.  

Now subtract your debt (1150*12 = 13800) so 15120-13800 = 1320/yr.The calculations go on, but in short you are going through all your effort to earn 1320/yr.

It will take significant time, effort, and money.Get a second job. 

People enjoy being genuinely appreciated.

I would potentially rent out the second home sometimes but my genuine intentions is to use it as much as possible in winter and summer.

Please ask yourself, if that is the plan of attack, what makes you believe your efforts will be more successful than the last Mortgagee?

Obviously, there's a lot more time/effort/risk involved in building, but for an additional $62,500 it seems like it might be worth the effort.

In short, I'd encourage you to think of your fund raising efforts like a product and the benefits it will bring to your investor.