You may be able to pledge a CD as collateral for a portion of the down payment.

You can't discharge it as @Omar Khan said and also there is no collateral attached to it.

Trust deed states are generally the best for speed and expense of collateral disposition in a default..

And it's unlikely you're going private lenders willing to do 7-figure loans in the 6% range, unless you're willing to give a personal guarantee and have collateral to cover the full loan amount.Personally, I've done loans in this range, but only under circumstances where my risk of loss was literally about 0%. 

Do you see any complications with obtaining financing from a future re-finance or from purchasing future property where I can use the free and clear home as collateral?

I am past my first step to BECOMING an investor as I plan to use this property as collateral for a loan to buy a rental property.

Banker told me i could either do a Cash Out refinance or that I can put it down for collateral and get a Line Of Credit.

The more you move it, the more impacts it has.This is one of the problems when you park it in equity...it stops moving and dies.Every move you make has a domino effect on future things as well as collateral impact on other things at the same time. 

Hello everyone!I am just now embarking on my rental real-estate adventure. My dad has volunteered to help me get started by allowing me to use some of his land (vacant, no structures, only used as cattle pasture at th...

Between $60k - $250kStated Income, No Collateral, 0% for 12+ MonthsNeed fast financing?