I would start there and think of anything that I could do to stay in the house for a while as it sounds like you would be losing a bit of money with the other options. 

Consider house hacking by purchasing a multi-family property with an FHA loan, or explore creative financing options like seller financing or partnering with private lenders.

Talk to the seller, but options are to cancel the sale (and risk losing your deposit), renegotiate to lower the price to allow you to fix the problems or ask them to fix it. 

Be prepared that they will be promoting an optional mentorship program at the end.

Rates may still be high, but sometimes they’re more flexible with repayment options than a mortgage refi.Family Loan Structure: Since you have an existing interest-free loan from family, you could talk to them about restructuring or even adding onto it, if they’re open to it.

My goal is reviewing retirement options. 

If they do need financing, then speak with your lender about their new build financing options. 

I was willing to pay but there isn't an option.

@Roger CreekmoreMini splits sound like the best option from the cheap seats. 

I would check and see how many 1 bed and 2 bed options there are and what they are priced at because most folks will prefer the full place to themselves so rooming 2 people together could make getting bookings a bit more difficult (not always the case but something to consider)