Funding a new construction project

[Louis Mannikko]

Hey all, I am trying to figure out a way to fund my primary home construction. I currently own my own home, and our debt to income ratio is about 41%. I am trying to have my house built while still living in my current home, however, when we add in the mortgage of the new home, it increases my D/I ratio to about 59% and the bank I was working with said I would not qualify. I have a large amount of equity in my home, value needs to be officially appraised, but I should have somewhere between 47k and 60k in equity. Plus about a 40k down payment. I am looking to build a house with a budget of ~400k. Does anyone have any ideas on how I can accomplish this? I could sell my current home first, however, that is not ideal. Would a hard money lender be an option? That's obviously the most expensive route. Current idea right now is to sell our current home and rent a house while the new home is being built. I was just hoping someone on here had some ideas that I may not have considered. Thanks in advance for your time.