Cash Out Towards Another Home?

[Rene Martinez]

I dont think it's called cash-out, but I had a lender tell me we could take some equity out of a current home and use it for the down payment to the next. My mother and I own a home in central Austin, it's a gold mine. We do not wanna sell it but we wanna pull some funds to buy another home, for me. I was told this is possible, but I cannot find financing info on it. I would home to borrow just enough for a down payment and a small reno, max $60k. 

Thanks in advance!