i'm 41 have a house in oregon i rent out.

House value: taxes appraisal says $350k, realistic $400k 1st: 138k @ 3.5% 2nd: $24k @ 8.5% Roof cost: $20-40k

I need to put a new roof on my house this year. I've had estimates come in at $17k-40k. I'd prefer to not pay in cash I think. So i'd like to take some equity out and at the same time get that 2nd mortgage down a little bit. anything extra i could get would go into air conditioning for the house.

I just refinanced my house in california and had to do a bank statement loan. my taxes aren't going to help me get a normal loan.

I talked to a lender here and she said she can do a loan for me based on my rental income ($1800 vs my mortgage, taxes and insurance being about $1200). BUT she said that she'd have to refi my first at the same time, which doesn't sound like something i should do. she said the rate would "be in the 3s" so i'd guess most likely i'd be at the same rate or a tiny bit higher, but losing the 8.5% so i dont know how that shakes out.

I talked briefly with a credit union i bank with there and they made it sound like they'd need my taxes/employment stuff and being self employed with poor taxes recently makes that hard.

Any advice? is it bad to wrap it all into one mortgage? is there anything else i should look into? I have an email into a loan broker at the credit union and a phone call to get the advice from my broker in california.