HEL 50k on 200k value owned out right.

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I recently talked to someone at Wells Fargo about a Hel. The guy inside the store told me I would probably get somewhere about $150k for the property that's worth about $200k.

After a couple days, a woman called me saying that she will be the voice between the guy at the branch and the under writer.

She stated that the loan will be for $50k instead of the $150k because of my debt to income ratio.

In my opinion, this would be crazy if I took out a loan of $50k for a property that is completely paid off. Do this sound right to you guys?

I am very interested in using the money to "flip" a couple houses, but I think the risk greatly increases since they are only giving me 25% value of my home.