Need Advice - Trouble Pulling Out Equity

[Ali Radhi]

BP Community,

Hope you're all doing well. I'm currently having some financing challenges and figured this would be the best place to ask for advice / opinions. Here's the scenario: My father is currently retired and owns two homes: his primary residence (worth around $300k with a $80k mortgage) and a secondary residence (worth around $225k free and clear).

Thus far, we've approached conventional lenders and a credit union and they've been reluctant to give us a HELOC on his primary residence, which we were planning to use for a down payment on a multifamily property. While his credit score is near 800, his DTI is 55% due to retirement. Therefore, we're sitting on a pile of equity that seems very difficult to access.

The one option we've been offered is a cash-out refi on his current property. He'd be required to payoff all outstanding debts, which would leave us around $60k to invest (not to mention raise his current interest rate by close to 2%). If this option provided access to more funds, I wouldn't think twice. However, access to $60k doesn't move the needle that much.

Does anyone have other recommendations regarding how to use a retiree's current or secondary home as collateral to secure a loan? Or, can anyone recommend any specific credit unions / local banks in the Houston area that would go higher than 50% DTI on a HELOC? I'm open to any other advice you may have as well.

Thank you very much for your time,

Ali Radhi