I hope it all comes to a resolution you can both be at peace with, since the alternative like @Michael Nemeth mentioned can be never ending war.

Its something that the seller is not usually willing to do so I would resort to avoiding PMI by using alternate choices of putting less than 20% down and do an 80-10-10 loan. 

An alternative is to do a money partner type deal. 

Also an alternative to self directed IRA (and to IRA owned LLC) is truly self directed trustee-managed Solo 401k plan, where you can have a checkbook control without the use of LLC and don't need a custodian.

Another alternative to your college route could be that you go part time?

Through that process there are alternatives to foreclosure like a deed in lieu or allowing a short (sale or pay).  

@Jean Norton I agree with you about crowdfunding being an alternative option of financing that developers can now consider but not a solution to everyone's funding woes or needs, especially those who think it is a 'last resort' option.

I am in the final stages of getting the mortgage approved in on Bank and another bank offer me a mortgage but at 8,5% plus annual fees landing the mortgage at over 10%pa.Does anyone have alternative ideas on how I can get finance for my projects and get my business going?

There may be alternative solutions, but that may require more detailed information.

But starting to look at all cost in addition to the 10% management fee and beginning to wonder if it makes sense to look at alternatives.