Home equity loan for more than sales price?

Your in a pickel here since most lenders will not do a home equity for less than 10k. Also, for a 10k home equity, your probably going to take a price hit as some lenders will give better rates for higher loan amounts. Depending on the credit situation of yourself and the co-signor, you may not even qualify for a home equity. The guidelines for home equities have really tightened, and if you do qualify, the rate most likely will be high. Also be aware that most lenders that I know of do not escrow with 1st lien home equities, meaning you will be responsible for property taxes and insurance on your own. The last poster hit on a point. There are two types of home equities, helocs and loans. Loans are fixed rate mortgages, but the rates tend to run high on these and with your scenario, I tend to think it might be a double digit interest rate. the heloc's are variable rate mortgages that usually (depending on the lender) adjust MONTHLY. Now the rates are usually lower, but if you can get approved for a heloc, look for one that has was it called a segment, or lock in feature. For example, say you get a 10k heloc, with the segment or lock in feature, you take a 10k draw, and then call the bank to lock in the rate for the 10k draw, thus the rate does not fluctuate on you. Most lenders will limit the number of times you can do this, so use it wisely. Last piece of information is that most helocs are 10/20 products, meaning that you can draw on the line for 10 years and you have 20 to pay it back, hope this helps