Posted by brad on July 16, 2002 at 09:59:51:
you said most lenders. that is the operative word. find a morgage broker. do you still have savings. nothing persuades a bank more than getting a new customer or loosing an old one. the problem is seasoning issue. the fact that you own it free will get you in at some bank. are the banks saying no up front or are they actually looking at the deal? you are better off getting a construction loan in the beginning so you do not have to kill your savings. but since you are past that how long have you owned the home? are you close to your year? have you tried to pull a smaller amount of money so the bank won’t feel like you are cashing out? you can use the equity without pulling it by subornation of a lean( using the home for a d/p on another home) good luck. i wish you the best.