- Jul 30, 2011
- Reaction score
Looking for some advice on how to finance a home addition. Here's the situation: we were thinking about selling our house, and moving to a larger house, but decided that we love our neighborhood and our childrens' school, so we thought putting an addition on our home would be the perfect solution. But, apparently it is not possible for us to get a HELOC because we don't have enough equity in our house. If we refinance with cash out, the most we can get is $17,000, which would not be enough. What is confusing to me is that if we moved, we would be approved for a much higher mortgage, and we can afford a much higher mortgage. We bought a modestly priced house 9 years ago, which is valued higher now than when we bought it, because we didn't want to be strapped by our mortgage. I feel like now, in being fiscally responsible with our home choice, we are being punished in that we can't obtain a loan to cover a home additon. I'm looking for any suggestions on how to make this work.