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I live in IL, I am hoping to buy a home (full out, no lien) in TX and rent it out. It's a family deal, so I am receiving a helluva deal. What are the TX laws governing taking out a mortgage of rental/investment properties?

gmakerley · Posted: Fri Jan 11, 2008 2:21 pm Post subject:

ernie, i'm afraid i can't comment on texas laws concerning mortgages on investment properties, but i have to admit i am perplexed by your question.

you initially state "full out, no lien" which i take to mean that you plan on not borrowing any money to make the purchase. if that's the case, why are you worried about a mortgage? a mortgage is a lien, quite simply.

are you addressing the thought of getting a mortgage after you already own it? i don't imagine there would be much problem, but you would be wise to wait for a texas lender to answer the question.

Guest

I plan on buying the house outright, then taking a lien to make minor cosmetic changes.

gmakerley · Posted: Fri Jan 11, 2008 3:30 pm Post subject:

that's kind of what i thought, ernie. we have some texans on here periodically; i'm sure they will monitor this thread and respond. in the meantime, if i hear of any particular regulations, i will let you know also.

ezmortgageloanz · Posted: Sat Jan 12, 2008 4:51 pm Post subject:

If you are entertaining the idea of doing some rehab after purchase, you could entertain a fix and flip loan.

These types of loans allow for 100% financing of the purchase price (which doesn't sound like a component you will need) + cost of repairs + closing costs + monthly mortgage payments during the loan period (in most cases).

edited to remove solicitation......

Regards,

Scott Miller

ckalvesmaki · Posted: Sun Jan 13, 2008 8:51 am Post subject:

Ernie....investment properties are not covered by TX A6 cash out rules......What kind of condition is the home in? It might be easier to get a loan for the home and use your cash to fix it rather than paying cash and then getting a loan.........

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

Hi Ernie,

You can borow up to 80% of the homes value in texas. As far as it being an investment property, that won't matter much. The only difference is that lenders charge a higher rate of interest on an investment property. If you own a home in IL, you may want to consider taking cash out of that since the interest rate is lower on a primary residence.

Another option is to purchase the home with a mortgage instead of paying cash and then taking a mortgage for the cash out. The reason I suggest this is that you will only have one set of closing costs instead of two.

Guest

I bought a small house using the first time homebuyer program allowing me a soft mortgage of $15,000 due when sold. The house is worth $150K I've some value-not to much(lucky me)even with the decline in the housing market (pd 162K0. My mortgage is small-additional 50K. Well, the wonderful part of this is now that I recently had gotten married--we have two homes. My loan insists I live in the house I bought. We are living in his house currently because of location (both houses are in the same town). If we could sell his house we would-this market it won't happen. My loan company letters are telling me I have to refinance. If we still plan to move iinto my house do I have to get an investment loan?
I've got great credit-working and have equity in my home. If I'm making my payments-do you think they'd force the issue right now?

gmakerley · Posted: Fri Jan 16, 2009 1:45 pm Post subject:

sherri, i don't quite understand something. you said "My loan company letters are telling me I have to refinance." that seems particularly odd, and pretty much out of character for most lenders.

are they suspicious that you'll be moving out? in that case, your loan would be due in full, as you know, and that would probably mean a refinance was necessary. however, you noted that you are continuing to live in the home. if so, there's no way your loan should be called by the lender.

did i miss something?

Posted: Fri Jan 16, 2009 1:51 pm Post subject:

We have moved into my husbands home since it actually was more cost effective-energy distance to work etc. Our plan is to move back in as soon as possible.

We decided to rent both houses and whichever didn't rent we'd live in.
If I have to refinance-do I have to pay all the expenses again. I bought in 2006. Will my husband be on the deed and mortgage? Thank you so much

gmakerley · Posted: Fri Jan 16, 2009 2:13 pm Post subject:

so, the lender got wind of the fact that you moved out? have you asked them, what if you move back in?

refinancing would entail fees, yes; attorney, title search, appraisal...the whole gamut. it's your choice, usually, as to whether your husband would be added to the transaction.

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