You have acquired skills that are worth 500k, so maybe you can translate that into an adjacent career path and leverage your existing skills?

I dept free minus these mortgages.  

The first question is, can I use a second home mortgage (10% down and lower interest rate) for this. 

I am ready to talk to mortgage lenders and anyone who can help guide me on a financial plan to rebuild my credit and start a small savings to build up to my first house hack deal in Q4 this year in the Raleigh/ research triangle area. 

The main condition was I had to have the downpayment (20%) first, close the deal, and then execute the owner financed 2nd mortgage. 

The mortgage should be around $1,600.

I don't know your living situation but if your paying x,xxx for rent or a mortgage and instead by living in one side and renting out the other you will be paying y,yyy instead and y is less then x that's great, especially if you can rent out your primary residence and make income there too. 

I'm an investor and also a licensed mortgage broker.

If they want one, then make it timesensitive- only for x years; location sensitive- within xx miles ofthe existing facility; make them pay for it, on top of the propertyvalue.P.

It's the complete opposite where I am - no one will sell their existing homes because they won't give up their ultra-low rates.