This is a bit of a credit nightmare, and I absolutely knew better.
A house came on the market for $50,000. The seller was in a financial problem, as they had already moved and were paying two mortgages. I offered them $30,000 for the property, as I intended to use it as a rental. They agreed, however I could not find a mortgage company willing to give a mortgage for less than $50,000. So, I took out a personal loan for $19,000 and charged the remaining $11,000 on a credit card with the intentions of refinancing after. Due to the relatively short length of the personal loan combined with the credit card balance, the payment is rediculously high "house payment." Needless to say, my credit score tanked after this, dropping from the 690s-710s to 630s-650s and I am unable to find a bank to do a home equity line of credit. I technically own the house free and clear. No bank seems to really understand the situation, and if they do they are unable to help. My debt to income is too high now, so no bank will write me a check for the amount, and I've made it clear I want them to pay my other creditors directly.
Any suggestions on how to flip the 19k personal loan/11k credit card into a longer length/lower payment mortgage/home equity loan? What bank, type of loan, etc? I have a family member with excellent credit willing to co-sign, however her debt to income ratio isn't that great either.
