texas Refinancing

Guest 0.10 Dollars($)

I am builing a new home, but have not yet sold my old home. I entered into my current mortgage about 5 years ago, and it was a Texas cash out mortgage. It is likely that I may need to close on my new home before I sell my old home. Am I eligible for a home equity line of credit in Texas on my old home (to get some cash out for closing on the new home), or do I have to refinance my current mortgage? Thanks.

jenkin7 · Joined: 04 Jun 2007 Posts: 880 131.00 Dollars($)

Hello Tim,

As far as I know, in Texas, if the mortgage is refinanced as a cash-out loan for once then, it has to be refinanced as a cash-out loan every time till the property is sold. It has to conform to the Texas cash-out rules every time.

So, if there is enough equity to support your needs you may do that.

In Texas, the time limit for another loan after a cash-out is 366 days and you have already covered 5 years.

larry · Joined: 27 Jun 2007 Posts: 2598 349.41 Dollars($)

Hi Tim,

Welcome to this forum.

I think you are eligible for a home equity line of credit in Texas on your old home as the time limit in Texas for another cash-out loan is 366. You should take help from a real estate agent who will help you in the process.

Thanks,
Larry

Samantha

Hi Tim,

Welcome to the forum.

I am not sure as to whether you wish to sell the home because you've also asked about the possibility of getting a home equity line of credit against it. But the purpose of taking out the home equity loan is paying for the closing costs. If that is so, then you can also look out for down payment and closing costs assistance offered by some non-profit organizations or those provided by the HUD. Why would just try to get a home equity loan? I am saying this because you need to pay interest that too at a higher rate compared to a first mortgage on your property.

You can avail assistance programs offered by HUD or the one available at AmeriDream Inc.

Hope this helps...

God bless you.

Samantha

lisascherzer · Joined: 04 Jan 2008 Posts: 575 66.11 Dollars($)

Hi Tim,

You should qualify for a home equity loan if you owe less than 80% of your home's value. You might even want to look into a bridge loan that allows you to pull equity out of the property to put down on the new home. Bridge loans do not require payments for 6 months or until the property sells (whichever comes first).

Here is a page the explains bridge loans: "http://www.mortgagelenders.us.com/bridge_loan.htm"

[Link deactivated as per forum rules. Thanks.]

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