I'm working with a guy that purchase a primary residence. Instead of taking out a 203k loan or even an FHA loan he put 20% down. He was under the assumption he would be able to take out the rehab costs at the end of fixing the property. Besides having done everything wrong to this point he has put $30k in rehab on credit cards. He now has a debt to equity ratio that is all out of whack. His credit score has been pinged from opening new credit cards throughout the process. He was told he no longer qualifies to get a refinance on the property to get out of the mess that has been created. Probably a good reason not to use credit cards to fund a rehab.

My questions is what options should he look into.  Selling the property is a last resort at this moment.  I've suggested many options to help with paying the credit cards back including taking out a loan on his employer 401k which is at a much more favorable rate and would alleviate some of that pressure.  His end game is refinancing if possible, but anyone know of other options?