It's starting to look like I will be approved for a USDA Loan to build a little house on the 10 acres that I already own, just off I45, close to Richland Chambers Lake in Texas. The amount they will loan me must be such that the value of the land "cannot exceed 30% of the appraised value of the house". Meaning that I will get about $90,000 to build. Guess I won't be getting the ICF I really want. I've figured out that I can do it within budget by using less expensive, but fairly efficient, building and insulating methods. The catch is: I have to use a USDA approved contractor! I've talked to a few, and the most basic conversation about radiant barriers, sealed attics, double stud walls, etc, is met by complete and total DUH. Please, if anyone has any ideas about where to get a USDA contractor from THIS century let me know. I hate to try to take control since I know how irritating that can be for somone trying to do their job.

This would work great, but my deed precludes subdividing to less than 10 acres.

In some cases you can split off the development rights (can be done with a deed restriction). Technically, the lot stays at 10 acres, but the right to do any further development is gone, so the entire lot is (assuming a knowledgeable appraiser) less valuable. But in your case, it sounds like this factor should already be included in the land appraisal (depends on the wording of the existing deed restriction).

You can do a good job with wood + cellulose + rigid foam. Or look into poured concrete with foam inserted on one side of the form. Alton might know how much that will save over ICFs.

Even if I had the right to subdivide, I couldn't get water, since my land would be declared a subdivision, and I'd have to put in a $27,000 water line. Plus, it would open some other cans of worms. Right now I'm restricted to no subdivision, no metal homes, no mobiles. Beyond that I can build a compound if I want. I don't even need an actual building permit.

My big problem right now is that I don't think I'm going to have access to a contractor that is USDA approved who has any clue about green building whatsoever.

I tried the usda loan and gave up after i couldn't find an approved contractor. i'm acting as my own gc to save money and have found a couple different banks that will work with me. you should see if any banks in your area will let you do that.

Did you have to get a mortgage from the bank, or a shorter term loan?

There are plenty of subs for me to use in my county, and virtually no USDA contractors.

I'm going to update this for future searches of USDA.

First, if you are of moderate circumstances, a USDA Home Loan will get you a zero down loan for a house in a rural area. The interest rate and terms are fantastic. There is an upfront fee, but nowhere near stupid PMI. USDA is an unrecognized home loan jewel, but sometimes they run out of money and you get to wait.

You need decent credit, and your income needs to be pretty low. I've helped a few people get these recently, and their county limits were approx $45,000/$47.000 net income. YMMV.

Anyway, to answer my own original question: They changed the rule, and you can use any contractor you want. They have to get approved by the USDA if they aren't, and if your state requires a contractors license, they must have one. It's easier to use someone already approved. Just look for someone you can bend to your will.