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1) A home equity loan that has tax-deductible interest would be my first choice. Even if you don't have much home equity, some lenders will loan more than you homes value.

Home equity loans are deductible only to the extent that they're below $100,000 in aggreagate and that the loan does not exceed the value of the actual equity in the house.

If a person doesn't have any equity, then that person can't deduct the interest payment on the loan.

-Chuck
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