Your issue may be more that the loan underwriter isn't interested or isn't aware of how to do the DTI on something different even if it could qualify for conventional. 

OK quick advice so I'm refinancing my duplex I've only owned it for almost one year, The real estate market is hot out here in North Idaho the home gotta appraised for 100 K more than purchase price They only give you 80% of the appraised value with a cash out refi , I was hoping for more but they're only willing to give me 17k at the closing table, It will raise my mortgage $200 monthly from 1880 to 2080 Since I'm house hacking The $1400 for rent on the other side supplements my income Which leaves me not having to pay too much to cover the paymentI've been going back-and-forth, but I really need to pay off $17000 of credit card debt It will raise my credit score significantly at least and then I'm thinking 6 more months down the road I can move it to a conventional loan or take a take advantage of FHA Program that lowers my interest rate if I have a good credit score to lower my payment right back downMy credit card bills amounts to 490 monthly( This is just the minimum payments) If I do Go through and take this to the closing table I will be saving $300 a month instantly By having to not send out 490 monthly in cc bills although my mortgage will go up $200 should I go through with it or try to plug away at the cc debt for the next year !?

Would that work best in a conventional or traditional loan?

I have a rental that is financed on a conventional loan at 5.65%.

This is much better than conventional where you’d need 20-30% down.

Conventional LTV is 95% so 95% of the $300k appraisal value is $285k. 

Refinance into a conventional mortgage and use the proceeds to pay off the HELOC.2.

Interest rates are about 100 bps higher for commercial vs conventional loan, all else equal.

Did you factor in the estimated $4k-$5k in closing cost as I assume you are doing conventional financing? 

You claim you can’t qualify for a conventional loan now.