MY HUSBAND AND I OWN A HOME IN NJ. WE ARE PLANNING ON BUILDING AN ADDITION - ROUGHLY 150K FOR THE ADDITION AND ABOUT 220K ON THE HOME MTGE
THE MORTGAGE OF OUR HOME IS IN MY HUSBAND AND MONTHER-IN-LAW'S NAME (PURCHASED PRIOR TO THE MARRIAGE)

I OWN ANOTHER HOME IN WHICH I HAVE A LOT OF EQUITY. (RENTING TO MY PARENTS)

WE NEED THE FOLLOWING
1) PURCHASE THE HOME FROM HIS MOTHER SO EVERYTHING IS IN OUR NAME
2) BORROW MONEY TO BUILD AN ADDTION ON THE HOME.

I'M NOT SURE IF I WANT A FIXED PAYMENT ON THE $ FOR THE ADDITION. IS THERE A WAY TO PAY AS YOU GO? (IE. CONSTRUCTION LOAN)

DOES IT MAKE SENSE TO GET THE MORTGAGE FIRST THEN DEAL WITH A DIFFERENT LOAN FOR THE ADDITION?

CAN I BORROW AGAINS THE EQUITY IN MY OTHER HOME TO DO THE CONSTRUCTION ON THE HOME I LIVE IN NOW?

ANY ADVICE ON THE MOST SENSIBLE THING TO DO WOULD BE GREATLY APPRICIATED! THANKS!

HELOC. Yes, you can draw against your investment property if you wish.

An equity loan on an investment property will be expensive at least 11%, maybe higher. You could purchase the home from your parents and have them give you a gift of equity so that you actually get cash back when you close. Use that to pay cash for your addition. If you still need more, THEN get a line of credit on your investment property.

I'm sure there are lots of ways to get the deal done, but thats probably the cheapest.

In Ky lenders do helocs on non-owner occ at one point above prime to 65%

How much would the addition cost? You can do a purchase/rehab loan so you can do it all in 1 shot and they use future value with improvements.

This would be the best rate and the least money to get the home in your name and financed in your name.

Another option is to do a family deed transfer with a gift of equity so the purchase price is honest and closer to the real value of the home. Then you can use that appraisal to get a home equity loan or fixed 2nd mortgage immediately after and has more lenders.