Compare Mortgage Quotes

jefferyaldridge · Joined: 27 Sep 2007 Posts: 1 1.37 Dollars($)

The TX property is not homesteaded and the lender is a nationwide lender.

Guest

No cash out refinance on Texas second home is not possible.

larry · Joined: 27 Jun 2007 Posts: 3322 474.67 Dollars($)

Hi Jefferyaldridge,

You cannot do a cash refinance on your second home which is located at Texas.

Moreover, you cannot claim a homestead exemption on any property apart from your primary residence

ckalvesmaki · Posted: Thu Sep 27, 2007 5:41 am Post subject:

Hi Jeffrey,

Second homes and investment homes are not covered by the Texas A6 laws. So you can do a cash out refi on your second home. Cash out refi's are allowed on your primary residence as well.

adonis · Posted: Thu Sep 27, 2007 6:05 am Post subject:

Hey this is getting confusing...one says it can be done while the other says no..are there any other opinions?

ckalvesmaki · Posted: Thu Sep 27, 2007 6:25 am Post subject:

The state constitution details what can and cannot be done with our primary residence or "homestead". In the Homestead Act, Article A, Section 6 (thus the A...6) is where the changes were made back in 1996/97 that enabled Texans to do a cash-out refinance loan.

There are many unique requirements, some of which make very little sense to people. These requirements only apply IF you are:

1) financing on your primary residence.
2) you are refinancing an existing note additional money for debt consolidation or simply cash to you
3) OR you are taking out a new loan for debt consolidation or cash out to you
4) the refinance of a loan which was created as a Texas A6 home equity loan. Once a home equity loan....always a home equity loan.

A Texas A6 home equity loan is NOT one of the following:

1) a refinance loan to change the interest rate or terms of an existing loan that was used to purchase the home
2) a refinance to combine a 1st lien and 2nd lien that were used to purchase the home
3) a refinance plus cash out to pay an ex-spouse's portion of the equity
4) a refinance plus cash out where the cash out is to ONLY pay back state, local or federal taxes
5) a refinance plus cash out where the cash out is done as a bona fide home improvement loan where funds go directly to the contractor.
6) a refinance of a secondary or investment property.

Unique features of the Texas A6 home equity loan are:

1) borrower must be given a notice of their rights and the loan cannot close earlier than 12 calendar days from when this notice is received.
2) a home cannot have more than one Texas A6 loan on it at a time
3) a Texas A6 loan cannot be refinanced within the first 12 months
4) a Texas A6 loan cannot be done if the total mortgage financing will be greater than 80% of the home's value.

I can understand your confusion Adonis.......but I am a mortgage professional who happens to also live in TX.....I think I know the laws.

adonis · Posted: Fri Sep 28, 2007 4:47 am Post subject:

yeah definitely kalvesmaki, that's why i asked for confirmation, we common people don't know much about laws, so naturally we get confused when there's a difference in opinions.

I hope you understand.

tomburris · Posted: Wed Oct 03, 2007 9:10 pm Post subject:

Cedric is right

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Compare Mortgage Quotes

Can you do a cashout mortgage on a 2nd home in TX with the p

Bookmark this page

Helpful References

Calculators

Financial Tools

Our Community

Community Rewards

Followers (252)

455 People like Mortgage

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1