These guys are hand to mouth, day to day types so the typical hire an attorney knee jerk advice you see in all these threads is just total crap.

We are married filing jointly with an income close to 150k last year.

The only exception(s) to this (if any) are the items reflected on theaccompanying Escrow Holdback Agreement, if applicable.Citizens is authorized to disburse the final draw in the amount of $________________ in accordancewith the executed Disbursement Authorization on file.It is understood that, in the event the Borrower(s) are dissatisfied in any way whatsoever with theremaining construction after completion by the General Contractor, their sole recourse is against theGeneral Contractor.Borrower(s) and General Contractor, jointly and severally, agree forever to fully protect, defend, andsave harmless Lender from and against any right, interest, claim, and each and every of them, ofBorrower(s) or General Contractor against the Lender, against all losses, costs, damages, and attorneyfees and expenses of every kind and nature which the Lender may suffer, expend, or incur under or byreason or in consequence of holding the remaining proceeds as provided herein."

When you each sign as co-guarantors you are signing jointly and severally, not for only 20% of the loan amount. 

My wife and I joint W2 income is above $150,000 and I can’t write off any repairs and improvements.

This strategic move paid off handsomely as we were able to command higher rents than initially projected.Here are the key financial details of the deal:Purchase Price: $270,000 (jointly with a partner)Financing: Obtained a commercial bank loan with a 30% down payment, 7% interest rate, and a 20-year amortization period.Initial Rents: $1050 and $1250Current Rents: $1400 and pre-leasing for $1500 (making it a 1% rule deal!)

The year before informing me of this divorce he had begun to secretly take out several loans on our joint banking accounts and against 2 of the 3 paid off vehicles then didnt pay them.

For example, what state is the property in; did your parents hold title jointly or as tenants in common; did your mother or father die last or did they die in a common disaster; did they leave a will or did they die intestate; if there are wills who are the beneficiaries, if not, are you and your sister the heirs and are there any other heirs; was the property their or the last to die's homestead and are there any creditors of your parents estates. 

Of course this does not work as does not count the remodeling added value which is the simple success key.That is good also for investors you could advice: I would plan a joint venture with them participating to the profit on a certain % (instead of asking a fee upfront), so you would remain with a % of a stable return, while your investor could finance back the money from the property and start over again.

Can you jointly qualify with someone to increase your loan amount?