Trying to move debt to my house

Philadelphia, Pennsylvania
House Hacking
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Trying to move debt to my house

Nicholas Williams
Philadelphia, PA · Member since 2022 · 37 posts · 15 votes

I'm looking for guidance from a mortgage lender or broker. I own a home in Port Richmond that I completely renovated, changing it from a 4-bedroom, 1-bath home into a 3-bedroom, 3.5-bath home with central air, updated appliances, new flooring, fresh paint, and solar panels. Despite these upgrades, it only appraised at about $340,000, which I believe is well below its true value.

I'm hoping to access some of my home's equity to consolidate debt. Some lenders have told me my debt-to-income ratio is too high, but the purpose of the loan is to pay off much of that debt. I also have tenants moving in, and the rental income will help cover the mortgage payments.

I'm looking for someone who can review my situation, determine whether I qualify for a cash-out refinance, HELOC, or home equity loan, and advise whether getting a new appraisal would be worthwhile.

Hello,

I am trying to take a money from the equity of my home to pay off debts and use for some other things. I purchased a home that

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  • Rick Albert
    Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
    2mo

    You can dispute the appraisal if you can provide legitimate comparable sales.

    It's been a minute but credit unions in the past have done far better deals. I did a 90% LTV HELOC on a personal residence a few years ago. I know that bank doesn't offer it anymore but others might.

    Do you live in the home? Maybe you move in and refi into an FHA mortgage? I've never seen it done so double check if that is an option.

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  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    2mo
    Quote from @Nicholas Williams:

    I'm looking for guidance from a mortgage lender or broker. I own a home in Port Richmond that I completely renovated, changing it from a 4-bedroom, 1-bath home into a 3-bedroom, 3.5-bath home with central air, updated appliances, new flooring, fresh paint, and solar panels. Despite these upgrades, it only appraised at about $340,000, which I believe is well below its true value.

    I'm hoping to access some of my home's equity to consolidate debt. Some lenders have told me my debt-to-income ratio is too high, but the purpose of the loan is to pay off much of that debt. I also have tenants moving in, and the rental income will help cover the mortgage payments.

    I'm looking for someone who can review my situation, determine whether I qualify for a cash-out refinance, HELOC, or home equity loan, and advise whether getting a new appraisal would be worthwhile.

    Hello,

    I am trying to take a money from the equity of my home to pay off debts and use for some other things. I purchased a home that

    @Nicholas Williams
    Since you're looking at several options, I'd compare them based on your long-term plan for the property rather than just the immediate cash available. Once the tenants are in place, the rental income may also strengthen your overall financing options depending on the loan program. A full review of your equity, income, and goals will usually point to the best path.

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  • Ryan SpathBusiness Member
    Real Estate Agent · Boise, ID · Member since 2017 · 557 posts · 376 votes
    2mo
    Quote from @Nicholas Williams:

    I'm looking for guidance from a mortgage lender or broker. I own a home in Port Richmond that I completely renovated, changing it from a 4-bedroom, 1-bath home into a 3-bedroom, 3.5-bath home with central air, updated appliances, new flooring, fresh paint, and solar panels. Despite these upgrades, it only appraised at about $340,000, which I believe is well below its true value.

    I'm hoping to access some of my home's equity to consolidate debt. Some lenders have told me my debt-to-income ratio is too high, but the purpose of the loan is to pay off much of that debt. I also have tenants moving in, and the rental income will help cover the mortgage payments.

    I'm looking for someone who can review my situation, determine whether I qualify for a cash-out refinance, HELOC, or home equity loan, and advise whether getting a new appraisal would be worthwhile.

    Hello,

    I am trying to take a money from the equity of my home to pay off debts and use for some other things. I purchased a home that


     Hi Nicholas, send me a DM with your email and Ill make an introduction to a lender that can help advise. 

    [email protected]208-600-2814
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2mo
    Quote from @Nicholas Williams:

    I'm looking for guidance from a mortgage lender or broker. I own a home in Port Richmond that I completely renovated, changing it from a 4-bedroom, 1-bath home into a 3-bedroom, 3.5-bath home with central air, updated appliances, new flooring, fresh paint, and solar panels. Despite these upgrades, it only appraised at about $340,000, which I believe is well below its true value.

    I'm hoping to access some of my home's equity to consolidate debt. Some lenders have told me my debt-to-income ratio is too high, but the purpose of the loan is to pay off much of that debt. I also have tenants moving in, and the rental income will help cover the mortgage payments.

    I'm looking for someone who can review my situation, determine whether I qualify for a cash-out refinance, HELOC, or home equity loan, and advise whether getting a new appraisal would be worthwhile.

    Hello,

    I am trying to take a money from the equity of my home to pay off debts and use for some other things. I purchased a home that


     If you provide the lender an analysis that you are paying these off (and you most likely will need to close them), then tehy may consider it. The issue sometimes is you pay them off but then just start racking up bills again.

    Moving from a 4 bed to 3 bed also probably is hurting the value. 

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    • Nicholas Williams
      OP
      Philadelphia, PA · Member since 2022 · 37 posts · 15 votes
      2mo

      @Chris Seveney it was never truly a 4 bedroom. It was more like 3 bedrooms with a sitting area. Plus I've added 2.5 bathrooms. Turning it from a 4bed 1bath to a 3bed 3.5 bath

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 497 votes
    2mo

    If the property is a non owner occupy investment property, and you have a tenant in place, a DSCR loan can be an option depending on the details. Your personal income and debt to income (DTI) ratios will not be considered if a DSCR loan. The loan will be structured off of the borrower's middle mortgage FICO score and whether the property rent covers the new mortgage, property taxes and insurance (and HOA if there is one).

    [email protected]818-770-0340
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  • Nicholas Williams
    OP
    Philadelphia, PA · Member since 2022 · 37 posts · 15 votes
    2mo

    The property is under an fha loan right now. I was living there and just moved out. 

    0Reply
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