Debt Consolidation with bruised credit

[Brian Middleton]

I was laid off from my job last spring and as a result my credit took a tumble. I have attempted to secure a HELOC loan to consolidate debt (credit card and auto payments) but my credit is near 650. I have it above 800+ just 2 years ago. I have applied with the bank that has my 1st Mortgage, score too low. Was told to try Credit Unions, Smaller Community banks and Non Bank lenders. Either scores too low or DTI is too high. I did have one company state they could help me, but they only offered to do a total refinance and to a cash out. That scenario would have raised my house payment and forced an escrow of my HOI and taxes, which I prefer to pay separate. In addition, I want to keep these loans separate as I want to focus on paying off my debts without really affecting my main mortgage. I refinanced my 1st mortgage in 2016 and would like to preserve my low payment and rate that I have in place.

So, I am wondering if I could possibly get a Hard/Private loan to consolidate my debts and then refinance with a traditional lender in say 3, 6 or 12 months. I know the rate would significantly be higher, however credit can recover quickly and my DTI would be more in line in this time frame.

I have also worked in the financial services industry so this would be critical for me to get my credit back so I can work in that field again.