Cash-out refinancing to cover inheritance buyout AND remodel?

[Michelle Dickens]

My brother and I inherited our mom's home when she passed away in December. She had a small mortgage left on it. We discussed selling it, but he now wants to keep it and remodel it (it needs it - outdated, foundation issues).  He's been talking to lenders, but a few of them have said that they can do loans that will pay of existing mortgage AND give money for remodeling, but buying my interest/inheritance is an issue. Evidently they can't do all three things. Is there no other way to do this? Are we stuck?

[Mark F.]

Originally posted by @Michelle Dickens:

that’s what. I thought as well. But this lender is saying that they can do the pay off of the mortgage and the Reno portion or my interest but not all three. Does that sound right?

Depends on the value of the property, the balance of the outstanding mortgage and how much your brother needs/wants for renovations. It sounds like either selling and splitted the profits or your brother refinancing the home with paying off the mortgage and your half of the asset. It sounds like that even though there is only a small mortgage as you mentioned in your first post that that value of the property does not have enough equity for the original loan payoff, your half of the equity in the property and the amount your brother wants to borrow for the renovation.