Seeking lending options for a family member with limited income but lots of equity

[Isaac Peters]

I've got a family member looking for help to find a way to finance the rebuild of his home after a total loss from a forest fire in 2020 near Medford, Oregon. His home has already been rebuilt, but due to the rapid price increase of materials and labor during the pandemic and an upper limit on the amount his insurance would cover, he now owes about 250k to the builder and needs to get it paid off ASAP. He has no mortgage on the property currently, but has been unable to qualify for a conventional mortgage or HELOC on the property. The property appraises for around 600k so he has a lot of equity in it. He has SSI disability income and has a renter in the property as well paying $1250 per month. He has been told by conventional lenders that he can't include the rental income to qualify for a mortgage since he has only had a renter for about a year, and would need to have 2 years of rental income to qualify it. He has looked into using a reverse mortgage, but he is 60 and from what he has been told, he would need to be 62 to qualify for those.

Any suggestions on lenders to contact or specific products or programs to look into that may help out will be very much appreciated!