The day after closing on sale of old home, we ordered a new double-wide using all cash from the sale, but ran $35,000 short. The bank would not give us a mortgage loan or a secured loan of any kind (even using the land which we paid $40,000 for that had a $15,000 new garage on it), since the house was being ordered, and not yet built. They offered an unsecured personal loan for 4yrs at 9.5% interest, which could not be replaced with a mortgage loan until 6 months after the house was in place. The entire $35,000 was placed toward the house order. The closing costs and interest to get a mortgage loan was more than the interest for the next 3.5yrs, so we decided not to bother.
Our home office is 13% of the house, so we can use that percentage of the interest and property tax for a business expense, but can the remaining interest paid be used as a personal tax deduction, since the bank refused $55,000 land and garage as security?
No. The loan must be secured by the property. And there is no longer any home office deduction for W-2 employees, only for the self-employed.
But you said "our" home office. Do you have a married couple owned business? If so, which state, and is it an LLC? You might need to file a Partnership income tax return.