Is there an alternative way to get the equity out of my house?

[Jessica Higgins]

I owe around $162,000 on my home but the value is now about $204,000. My credit score is in the high 500's, largely because I have all my credit cards at their maximum left over from Christmas, I just paid them down to about 40% of their balances but, now I have to wait a full month for this to report and the scores to pop up, hopefully above a 620 to get some sort of HELOC, or equity loan. Do you know of any alternative ways to tap into this, so I can use this money for down payments on fix and flip loans instead?

[David Dachtera]

@Jessica Higgins,

Coupla things ...

First, be advised that as of June 1st, 2016, credit utilizations now have a history. Your score will very likely be based on your utilization history and the trend it represents. So, the paydown thing my not work as you expect.

Second, go ahead and ask the bank what they would charge for an appraisal for HELOC. If you think it might be worth it, let the bank tell you what it thinks of your equity position.