100% HELOC with 57% Debt to income

TJ · Joined: 02 Aug 2008 Posts: 1

I'm looking to purchase land next to me.
Here is a little background

I built my home in Jacksonville, FL in Dec '07 and I recently had it appraised. I have exactly enough equity in it to purchase the lot @ 100%LTV on my house. My goal is to put a mobile home on it to lease out to pay for the note. My wife and I have excellent credit 740-760 but, the problem I've run into is our debt to income ratio. Which never was an issue until recently. There are several factors against us, as far as, we have only been in our home for 7 months, I have 1 rental income from our previous home since March, High Debt to income with the new HELOC, and unable to use the future income to offset this debt to income ratio.
What, if any, could I do to purchase this lot?
Any help would be Greatly appreciated!

Steve Ching · Posted: Mon Aug 04, 2008 11:14 pm Post subject:

You may be eligible for a smaller HELOC depending on your current situation which would allow you to pay off some existing debt and act as down payment on a lot loan.

You may want to consider selling your old house (existing rental) as well.