Is there a way to get a construction loan with the original property still on the land so I can do a new build on part of the property and then slowly rehab the historic property?

Hi, We have one loan for my house under my name, another loan for a rental property under my wife name.

This is a very short term loan which is typically repaid same day. 

But, will it be possible to secure another loan ?

Student loan debt of 40k, paying 700/month (20k at 4% paying 200/month and 20k at 0% paying back parents 500/month).

I would obviously be sacrificing hard cash flow though since I would then have two homes with two loans rather than one free and clear. 

Would depend on the loan amount size.

Of our 50 plus loans about 10 went into default in the financial crisis of 2008.  

If the loan amount exceeds $1M, then rates are in the high 6's to mid 7's. 

I'm sure that is true, because most mortgage companies aren't going to go searching for issues when there aren't problems - but in the truest sense of the word this is loan fraud and I'm just not up for it in my portfolio.I did hear from a friend of a friend type that she was able to close a subto with a small local bank somewhere in Georgia (property was also located there) because of a long standing relationship with the bank.