You definitely will not want to include your husband on any loans. With him on the application you would be turned down due to the foreclosure situation with his other home. If you qualify on your own you can obtain a cash out mortgage on the investment property(s) up to 70-75%LTV. Investment properties also don’t require Home Stead waivers from spouses either. They are your homes, you can acquire a mortgage on them if you qualify with your income and credit. If the amount of cash you need is small, some banks will even give you a first lien Heloc (Home Equity Line of Credit, these are usually interest only loans, so you must be disciplined. Thanks, Dan
An added precaution is to not have your husband’s name on the deed. This will keep the bank from even making a financial connection.
Another option is to sell the properties on a land contract to your brother. You would set a purchase price and an interest rate. Your brother would make the payments each month to you (with interest) and then after 3 to 5 years he would give you a full payoff (probably getting a mortgage himself).
Though you will not get all the cash upfront, you are receiving money with interest each month to put towards your debts and the payoff will be nearly the same amount as you sell the homes for now (since the initial payments are almost all interest like a loan). This frees up your credit and keeps you from obtaining additional debt.