When applying for a loan, does increase in equity value or property count as income?
I have a residence in an area that has gone up in popularity recently. The home values in our area have gone up at least $50,000.00 a year in the last two years for each and every property in our small town. I would like to use the equity in my personal property to either expand this property with one room B & B, and or buy more land and build another property. I have income from various other sources, but it is not going to look good this year :)in a loan report. The property is conservatively estimated appraisal of $350,000 with an existing mortgage of $105,000. I am happy and lucky to be in this situation, but what do you think are my options? Can I use the increase in equity as income? The area has gone up in value because of a rail trail added by the river and the lovely mountain community.