I've got a 778, I own a house that I inherited when my dad passed, with roughly 350k in equity.

The bank or lender didn't get paid so the Master in Equity is auctioning off the house.It will be interesting to see what it sells for.What level of completion is the house?

The home had over 1.5 million in equity at the time but that was all they would offer.  

I have tier 1 credit and according to the bank there's roughly $140,000 in equity in my home, but my debt to income ratio is not sufficient. 

Sell, pocket $200k in equity, appreciation since they bought it, bank 25% for a new deposit in a year once they repair credit, buy two new second hand cars because they need them, pay off credit card debt, put a little extra to the side for increased rent payments for next 12 months, and reorganize to buy in 12-18 months... now they see the light, a chance to move forward, to not stress, and they're lucky the market increased so much... but if they struggle to keep it, struggle to make payments, then 10 months realize they need to sell, would they have as much equity, maybe, maybe not..  

I am trying to see if the numbers still make sense to do so after financing the equity portion that I would owe my sister.Any thoughts on how I can finance the $140K in equity I would owe my sister?

In addition, when you get appreciation, you get it on the $1M even though you only have $500K in equity.

In the next few months, I'll have:$260,000 in savings$100,000 in equity in the loft$355,000 outstanding on the houseShould I sell the loft, use the equity, and combine it with my savings to pay off the house?

It's building up equity over the long haul with built-in equity from buying right, appreciation and principal paydown that really builds wealth in real estate. 

Some have more than $1 million in equity while others have less.4.