Heloc or Refinance under certain conditions?

[Sarah Hardy]

Hi BP,

I currently own a home with two mortgages on it. I own the home now but the mortgages are under my parents name and they pay them. One of them is a line of credit and the other is the original mortgage. 

The total amount of the two loans combined is about 350k on a million dollar home . I have student debt of about 100k and my yearly income is 100k. I work abroad and don't pay any rent, have no credit card debt or other debt other than the significant student loans. Those are my only debt payments.

The home is worth a significant amount of money due to its location but it needs a lot of work that my parents cant afford. It needs a new roof, HVAC system, and some other exterior maintenance. The entire interior needs to be updated. My plan is to refinance or use a HELOC to pay for all of these upgrades which will increase the value of the home if we decide to sell or at least make the home much nicer.

All of these upgrades cost A LOT. It is a larger home in an expensive area so the work is expensive too. I want to pull about 150-180k to give our home the remodel it deserves. It may seem like a lot of money but I know the price will increase by at least how much I put into it, if not more so I am not too worried about it. 

I know banks don't allow 3 loans on a home, so I was planning on refinancing or HELOC the amount of the smaller loan (line of credit) about 150k PLUS the 150-180k I need about 300-330k in order to pay off the existing line of credit and get the money for the remodel. I just don't know which loan is worth pursuing/I will be approved for due to my large student debt amount. It will push my debt ratio high and my parents will still cover their part of the loan but I just need advice as to which type of loan to pursue in my situation?

Thank you for your time.