Texas LAWS are newto us!!!

Guest 0.10 Dollars($)

My wife has a line of credit in her name only. When we tried to refinance and get a construction loan, to make improvements, in my name. Two days before closing the bank called to inform us that we could not close due to Texas law "once cash out always a cash out". My middle score is 651. We needed 680 to qualify as investors and avoid the cash out rules. After 60 days of preparing to close, we are stuck. Need advice on other possible options.

Niicss · Posted: Tue Jul 22, 2008 12:18 am Post subject:

Welcome TAYUNCE.

How long have you taken the loan? You cannot refinance within the first 12 months after taking the loan. I feel you should improve your credit and take it to 680 score. You can get information about Texas A6 at http://www.mortgagefit.com/texas/a6loan-law.html#23849

Guest 0.10 Dollars($)

Thanks for your reply, In two months, the line of credit will be two years old. I understand the 1 cash out per 12 months rule;However, as the loan officer explains there is another law that prohibits us from replacing a cash out loan with a construction loan. "once a cash out always a cash out. Please help us to understand?

terrence8617 · Joined: 21 Jul 2008 Posts: 2 1.79 Dollars($)

Mr. Jacey please disregard the last post, after reading your attached A6 link this information is quite clear and very helpful. Thank you very much!

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi terrence.

I have answered your question at http://www.mortgagefit.com/texas/cashout-a6law.html#56069

You can have a look at it and feel free to ask if you have any further questions.

Best of luck,
Larry

All times are GMT - 7 Hours

Page 1 of 1