Quote Originally Posted by Roland Slugg View Post
The last option may be somewhat difficult, as the lender would likely want the loan proceeds to be advanced all at once, up-front. However, an open-ended LOC may be possible using the house as security. I have never seen that done except for home equity loans, so I don't know if that is an option.
That's exactly what I have. An open LOC with no primary mortgage that I can draw on or pay how I choose. The only requirement is that interest needs to be paid each month, but I can take an advance and use that money to make payment if needed. I didn't realize that it's an unusual setup.

I told client that CU may want a co-signer because of the situation. They are meeting w/ attorney next week, but threw it out as a possibility.