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texas a6 laws - home improvements are bad?

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bdg Joined: 21 Apr 2010 Posts: 2 1.53 Dollars($)	Posted: Wed Apr 21, 2010 2:05 pm    Post subject: texas a6 laws - home improvements are bad? Like 0 Dislike 0 I'm completing a refi and pulling money out for the purpose of doing home improvments. The broker is now telling me that the Texas A6 laws prevent the cash out from a refinance from being for home improvements. He says that if I write a letter saying that I'm using the money for savings, a vacation or high-yield investments, then the loan can be completed. Is it really true that the Texas A6 laws preclude cash out money from being used for home improvements, but allow vacations and high yield investments? FWIW, the LTV is <40%, credit score is 800, and other than the current mortgage, there is no debt.
adonis Joined: 22 Oct 2005 Posts: 10574 Location: ALASKA 1090.82 Dollars($)	Posted: Wed Apr 21, 2010 8:25 pm    Post subject: Like 0 Dislike 0 Hi bdg, As far as I know, a loan will not be considered as a Texas A6 home equity loan if the cash out loan is used for the purpose of home improvement and the funds go directly to the contractor. To know more about Texas A6 law, check out the given page: http://www.mortgagefit.com/texas/a6loan-law.html I would suggest you to contact an attorney who is well versed with the Texas A6 law and take his opinion in this regard. _________________ Procrastination is the enemy of your financial success
bdg Joined: 21 Apr 2010 Posts: 2 1.53 Dollars($)	Posted: Thu Apr 22, 2010 6:30 am    Post subject: Like 0 Dislike 0 The loan is so small and I don't need the money bad enough to start throwing lawyer fees on top of the closing costs. And I'm not comfortable giving the contractor the entire lump sum up front. I'm hoping someone can confirm that Texas A6 laws discourage the cash out from a refi being used for home improvements, but encourage the cash out be used for vacations and high yield investments. That definitely sounds insane to me.

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