All Forum Posts by: Annushka Alicea

@Annushka Alicea hmmm, I have some thoughts here that I think might help with what you are trying to do.

1. Cash Out Mortgage - A cash out mortgage can be granted to someone and the cash can be used to pay down debts to help the borrower qualify.  Now this might be a little counter productive if your current interest rate is 2% or something like that...but the concept is the same.  Worst case scenario I still might suggest to examine this option.  Meaning, if you pay off all of your debts, then your credit score will really increase.  It might take 1 year to do, but in a year rates might be lower any ways.  So having a higher score, better rates...maybe it's a temporary solution that you can use to your advantage.

2. HELOC - We can use the same concept above here - at least in theory. Ask if you can open a HELOC to pay off those debts. That means that your HELOC will start with a balance right away, but maybe it's possible in the same way a cash out mortgage is. Any traditional bank can provide a HELOC to you (well, 99% of them). They might have an issue with your current credit score though. Don't be surprised if they need you to be at 660 to get one. But try smaller, local lenders first. Maybe even ask the "New York City Real Estate Investing" facebook page which banks are the most flexible. I think there are several of those pages/groups. But certainly lean on locals to help guide you to good lenders. The smaller the lender, the greater chances of them being more flexible with their qualifications.

Hope some of that helps in some way.  Good luck!

@Annushka Alicea just about every bank offers HELOCs on your primary residence. Start with the the bank you are using right now. Call around. Your debt and credit score may be issues but it can’t hurt to start asking. 

Hey @Annushka Alicea - you may be better off working on repairing your credit first before pulling money out of your home (which it sounds like you want to do to consolidate your debt which is bringing your credit down). It's a catch-22. You may possible be interested in a sale-leaseback option but those are unique and require you to sell your home.