An additional option would be to get financing traditional or B Lender, and place a renter in the unit and you pay the shortfall out of pocket, this is a risky option because we do not know when the market will start the rebound but could prevent the loss of your deposit if you can make this work.

And economists at Realtor.com expect a rebound in July, August, and September, as fears about the pandemic subside, and buyers return to the market with pent-up demand from a lost spring season.2But given safety concerns and the current economic climate, is it prudent to jump back into the real estate market?

I see one year feasibility and a year to construct and build, roughly two years to allow the market to rebound.

That would allow your credit to rebound and then you could do a rate/term refi at the best possible rate when all was said and done. 

“May Light always surround you;Hope kindle and rebound you.May your Hurts turn to Healing;Your Heart embrace Feeling.May Wounds become Wisdom;Every Kindness a Prism.May Laughter infect you;Your Passion resurrect you.May Goodness inspireyour Deepest Desires.Through all that you Reach For,May your arms Never Tire.”Demetrius L.

Due to upcoming primaries and following presidential election, most stats point to a solid rebound coming by Q1 off 2023. 

Housing market was hitting bottom and starting to rebound.

It's actually great because the town died a few years ago and is currently on the rebound.

Just read the following article that should be food for thought... http://www.housingwire.com/articles/32235-homeowne...Will Detroit rebound?

And If the homeowner had kept the payments current on the first this would indicate to me they wanted to stay in the home, at least until it had rebounded.