If I qualify for a USDA home loan, what are my options for my current home?

My husband and I found out that we could qualify for a Rural Housing loan from the USDA. We currently own a home, but have outgrown it. Financially, things have changed in recent years and our income isn't what it was when we purchased our home. Anyway, we would have to sell our house but that may be difficult... show more My husband and I found out that we could qualify for a Rural Housing loan from the USDA. We currently own a home, but have outgrown it. Financially, things have changed in recent years and our income isn't what it was when we purchased our home. Anyway, we would have to sell our house but that may be difficult due to where we live. We can't afford to pay on 2 houses. I was just trying to find out if there are any programs to buy my house in order for us to purchase a new one. We are looking to purchase a new house by the summer of 2012, and by that time we will owe just under $57,000 on our current home. We live in Illinois.
Update: We have already tried moving furniture, put kids in different rooms, and did some major remodeling. We can't add on because we are landlocked. We can't use our attic(long story). Our basement is already being used for laundry and storage, since we don't have a garage and the attic is small. I also run a small home... show more We have already tried moving furniture, put kids in different rooms, and did some major remodeling. We can't add on because we are landlocked. We can't use our attic(long story). Our basement is already being used for laundry and storage, since we don't have a garage and the attic is small. I also run a small home day care, which takes up a some space. I started the day care when I only had 2 children. I now have 4 children in a 3 bedroom home with a day care and a small kitchen. If we had a garage, trust me, we would be able to make more room.
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