Frozen and discouraged

[Ashley Sanchez]

Hi there! 
 

We just recently got approved for a HELOC on our main residence in order to buy our income property. Unfortunately, the appraisal did not come back as high as we wanted it to and it looks like we are ending up with about 125K as opposed to the 165K we wanted.

My question is this; originally I was thinking 165K could buy us something outright. Now however, at 125k, I think we are looking at more of a down payment. How will we get approved for a second mortgage though, when we still have our first and now the HELOC on top of that? Is that even doable? I just can wrap my head around a bank approving us for a second mortgage on something with a first mortgage and maxed out HELOC. Our income is 150k gross, and we have student loan debt (50k) but that's it (no car notes, etc.)

Can someone help me understand what we should do next? I’m feeling discouraged