Equity lines of credit are very tough to get in current market conditions. If there is no measurable value in using your mortgage to secure a loan it would seem there are no other options to finance the addition. The process to determine the value of your home would require a Realtor to complete a market analysis comparing your home to recent sales of homes in the immediate area which are similar to your home. If the results indicate there is positive equity in your home, you might be in a position to speak to a mortgage lender. If the lender determines there is a program which allows home improvement (specifically for the construction of additional finished square footage) then you would be subject to paying lending fees (including an appraisal which must find enough value to fund the loan) much like a streamline loan.
We wish you luck. The current guidelines for all home loans are currently restrictive.
The Moyers Team, Realtors
Maryanne Moyers, Managing Broker (540) 379-7359
Dwayne Moyers, Realtor (540) 446-6284