Need Help with Home Equity Line for 2nd Home After Bad Situation
Hey guys,
I'm looking for serious help as we're looking to get access to our home equity line or (other options) within the next 12-18 months. Our original plan was to purchase a second multifamily home within this timeframe.
Any help is absolutely appreciated.
Here's the housing situation:
- We're in Massachusetts and currently own a 3-family home on FHA under her name. Our home appreciated and we have about $100k in equity.
- Tenants pay around $5k/month and we pay around $3k/month for mortgage. Tenants always pay on time and no issues.
- My fiancee is an accountant for the state and earns $70k a year (Steady employment).
Our Goal:
- We'd like to access our home line of equity or other funds for both emergencies, and for purchasing a second home out of state with our equity within the next year if possible.
- Focusing on multifamily rental properties.
- We'd like to move away from the FHA for a conventional loan on her current house to save on PMI.
- We're fine with any other creative options or lenient lenders.
However, we hit a tough spot.
The Huge Problem:
Fiancee
- My fiancee had a brain injury from a car accident 6 years ago that impacts her ability to regulate her emotion on her frontal lobe. She's gainfully employed as an accountant, but cannot regulate her emotions/anger nor judge situations accurately due to the damage.
- She decided not to pay the mortgage for 1.5 years out of misguided anger towards the house and her tenants without my knowledge. She filed for chapter 13 to prevent foreclosure last Summer, and we are in the process of undoing the bankruptcy.
- She is signing up for a home loan modification in this week and we are planning to dismiss the bankruptcy in 1-2 weeks.
- There were no financial issues prior and technically we are still solid.
- She has a 620 credit score as a result and may be slightly lower. Her chapter 13 will look really bad.
Myself
- Sadly, and incidentally, I suffered my own brain injury 2 years ago. I had a meningitis incident while in the hospital, which now impairs me physically/balance. I can think and speak without any issues.
- I'm expected to be on disability for life.
- I have a 730-740 credit score but no income besides Social Security (not happy with that).
- I have broad Power Attorney to help my fiancee manage her finances from here on out.
Ideas Needed:
If anyone can help bring guidance I'd really appreciate this. I know consignment on a home equity loan is an option but with the recent bankruptcy, we don't know if this is even an option.
It seems like with the dismissal, it can take 2-3 years to obtain a conventional loan and we really can't wait that long. Given the coronavirus situation, we 'd like our options opened.
If there's any creative financing, options, or guidance I really appreciate this.
Our respective brain injuries have done us no favors to say the least.