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Texas a6 cash out refinance: Find out how to qualify for it

In the state of Texas, there is a law pertaining to cash-out refinance. This law is known as Texas cash out 50(a)(6). This is more popularly known as Texas a6 law. Under Texas refinance laws, you are required to take out a cash out loan of 80% of the appraised value of the property.

If you are a US citizen, a permanent resident alien or a non-permanent resident alien, then you may be eligible for this loan. However, if you are a foreign national or a borrower with diplomatic immunity, then you will not be eligible for this loan.

Eligibility criteria for Texas a6 cash out refinance

Eligibility criteria to get approved for Texas a6 cash out refinance are listed below.

Properties

Single family residences, warrantable attached/detached condos and PUDs classified as homestead under Texas a6 laws. Non-warrantable condos, non-warrantable Planned Unit Developments (PUDs), manufactured home etc. are however not eligible. Anyways, the minimum property area should be 600 sq ft. Property must be classified as a homestead under Texas refinance laws.

Credit score and DTI

The minimum credit score required for this is 620. In addition to this, the maximum permissible DTI (debt to income) ratio is 45%.

Credit history

You should have established a good credit score after you have filed bankruptcy and/or foreclosure. If your property has been foreclosed, then the waiting period to get approved for this loan is 7 years.

Employment

A continuous employment of 2 years is required. For self-employed persons, proper documentation of income is required.

Assets

Assets that are used to close the transaction must be disclosed. Funds that you use in the transaction must come from a verified source. While taking out this loan, you should follow the Texas a6 cash out refinance rules properly. It is advised that you should get the help from a mortgage attorney for this.

Hi, has anyone here heard of Texas a6 cash out [url=http://www.mortgagefit.com/refinance.html]refinance[/url] rules or something like that? I am looking to refi my property in Texas. Any info will be helpful.

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am hearing conflicting information from shopping to refinance our mortgage loan. We converted our construction loan to a mortgage loan and shortly after decided to take out some equity and lower the mortgage rate in 2003. Now I am being told by some lenders that we will always have to pay an additional .25% on any future refinances since that once we took out the cash on that refi 10 years ago. Other lenders state that it is only charged when cash comes out and it is not applicable. What is the correct answer, the way the law states it?

please reply as soon as possible as i want to lock in a very low rate.

Like | Dislike | Share | Posted: Thu, 01/17/2013 - 01:01 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

The lender cannot charge more than 3% as fees while going for a Texas cash out refinance. You can check out the given page to find a discussion on this topic:
http://www.mortgagefit.com/texas/cashout-problem.html

Like | Dislike | Share | Posted: Thu, 02/04/2010 - 02:17

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

P.C. , If you value had dropped and the LTV would exceed 80%, [b:64ae9f28ef]YES[/b:64ae9f28ef], you can refinance just the first mortgage and roll your closing costs into the loan, as long as the LTV does not exceed 80% (new 1st mtg to value) and the CLTV (new 1st & existing 2nd mtg) does not exceed 90%. As long as your LTV is <=80%, you would not have mortgage insurance, even if the CLTV is <=90%.

Like | Dislike | Share | Posted: Mon, 12/06/2010 - 14:08 | Post subject:

jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Bill,

It is true that an A6 loan always remains an A6 loan. Even if you refinance an A6 loan with a rate and term loan, it will still be considered as an A6 loan. You will not be able to wrap your closing costs into the new loan.

Hi Nancy,

I don't think the new loan would be considered as a cash-out loan, because you are merely using the equity in the property and taking out a large loan to cover both the mortgages. The existing loans are not Texas A6 loans. Thus, you can refinance it using a 15 year rate and term loan fixed loan.

Like | Dislike | Share | Posted: Fri, 10/09/2009 - 03:24

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can I do a Texas cashout on a rental home?

Like | Dislike | Share | Posted: Wed, 12/12/2012 - 12:01 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

NavyFed turned me down after the inspection! Saying tx rules did not allow cashout refi on rental property.

Like | Dislike | Share | Posted: Wed, 12/12/2012 - 12:04 | Post subject:

lucie.c.elliott's picture
lucie.c.elliott | Joined: July 6, 2012 10:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

TX has an A-6 law which limits the amount for a cashout refinance. Typically, lenders limit the loan to value amount to 70-75% If you have 25% or more equity in your home feel free to give us a call. We lend in TX.

Like | Dislike | Share | Posted: Wed, 12/12/2012 - 13:06

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't think that will be true. I think it will be only charged when cash comes out!!

Like | Dislike | Share | Posted: Thu, 01/17/2013 - 20:46 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I currently have a 1st and a HELOC that I pulled at a later day. It has been more than 2 years since I took out the HELOC. With both loans combined, my equity is still under 80%. I am looking to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] both loans into a 5/1 ARM. I plan to move within the next 5 years, so the ARM makes since for me. I was told by one loan officer that Texas law does not allow a HELOC to be refinanced into an ARM. I have another loan officer that feels that I can do it and says he has never heard of that problem. He is well aware of the other A6 issues though. Has anyone seen this problem before? I can't find anything in the A6 law that states anything in regards to requiring a fixed loan. I don't want to go forward with everything and then have an issue at closing. Thanks

Like | Dislike | Share | Posted: Thu, 06/24/2010 - 15:13 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

in 2008 I refinanced my home to pay my ex husband's share of the equity AND pay some of his bad debt. I was given an Owelty loan which is A6.
I November last year I also got an equity loan to consolidate my credit card debts. I am reading here that this is not allowed. How come no one told me and what are the consequences? I do not want to do anything illegal...

Like | Dislike | Share | Posted: Sat, 07/24/2010 - 15:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You can go for a normal refinance if you've equity in your property and try to lower your interest rate.

Like | Dislike | Share | Posted: Wed, 10/27/2010 - 03:46

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

we have an investment property that was owned free and clear by 3 family members. my wife and i got a loan (we just found out was classified as this texas A6 loan) to buy out the other family members. we now want to [url=http://www.mortgagefit.com/refinance.html]refinance[/url] that loan to get better terms. i have been told that this loan cannot be refinanced because it is an A6 loan. this does not make sense. it was considered "cash out" the first time because we had topay off the other parties. we are not asking for cash out this time. we just want to refi for better terms.
any ideas or advice?

Like | Dislike | Share | Posted: Thu, 01/13/2011 - 11:51 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome MHcruiser,

A Texas A6 loan cannot be refinanced within the first 12 months. Thus, I don't think you won't be able to apply for the refinance before that time period. You will have to wait for 12 months and then apply for a mortgage refinance.

Like | Dislike | Share | Posted: Tue, 09/21/2010 - 00:37

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have a normal primary 15-yr fixed mortgage on 50% of the home's value (5 years old). We also have a 20-yr fixed TX-A6 loan on 18% of the homes value (2-years old).

The primary loan rate is 5.00% fixed, and the secondary is 5.9% fixed.

We are looking to consolidate these two loans into a single 30-year fixed. Would the single consolidated loan be considered an A6 loan?

Looking for thoughts on whether it's a good idea to combine the two, or try to refinance both independently to capture today's rates, and extend the term length (no more cash out this time around).

Thanks for the help!

Like | Dislike | Share | Posted: Thu, 10/21/2010 - 17:16 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Adam!

Welcome to the forums!

I don't think that the lender can charge you more on the interest on this loan.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 03/04/2013 - 22:30

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

IF YOU PAY OFF YOUR 2ND THAT WAS A LINE OF CREDIT FOR A POOL. AND THERE IS A NEW SECOND ON THE HOME BUT IT WAS NOT TO PAY OFF THE ORIGINAL SECOND (A6) BUT WAS FOR A CONTRACTOR TO ADD SQ FOOTAGE TO THE HOUSE, AM I STILL UNDER THE A6 RULE ON MY TITLE? OR WHEN I PAID OFF THE POOL LOAN DID IT CLEAR ME FROM THE A6 RULE?

Like | Dislike | Share | Posted: Thu, 04/29/2010 - 07:19 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

recently took on a home improvemnt loan in texas, Like to know if it is true if i have to wait a year to try to refinance and lump the mortgage and loan into one payment. My understanding i am not under the A6 loan terms due to the fact i got a home improvement loan that went to straight to the contractors.

Like | Dislike | Share | Posted: Mon, 09/06/2010 - 21:29 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

As far as I know, a Texas A6 loan cannot be refinanced within the first 12 months. After that, you can refinance the loan. You can contact the local lenders in order to find out whether or not they can help you with a loan. To know more on this issue, check out the given page:
http://www.mortgagefit.com/texas/a6loan-law.html#23849

Like | Dislike | Share | Posted: Thu, 01/13/2011 - 23:51

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

In tears at this moment, bewildered at my mortgage company, ASC, who told my husband that we had qualified for the HAMP program. We waited and waited for papers but nothing. I tried contacting our case worker to no avail for the last month. Then today I talked with a fellow who informed me that we have been denied for the HAMP program because we have a Texas cash out loan. Foreclosure date is March 6th. I did'nt even know what that was til I looked on the internet and found this site. Would'nt we know if we had this type of loan? We've never taken money out against the house. Could we have done this without realizing it? Any advice would be so helpful and appreciated. thanks Julie

Like | Dislike | Share | Posted: Fri, 09/30/2011 - 07:05 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I live in Texas and have been investigating the HUD Section 203(K) loan program to use for buying and rehabbing a second home for my retired parents to live in (not my primary residence). I was wanting to do some of the rehab work myself and subcontracting out the rest. I'm a skilled carpenter and rehabber but I do not work in that field (I'm a minister). I was told by a Texas loan officer who does 203(K) loans that the Texas A6 law would not allow me to do any of the work myself. Instead a registered contractor would have to be hired to do it all. I have verified that the 203(K) loan program does not have this stipulation-homeowners are allowed to do the reab work. Is what the loan officer told me a correct statement based on what you know about the Texas A6 law?

Like | Dislike | Share | Posted: Fri, 12/16/2011 - 10:05 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

two years ago i took a cash-loan. Now my husband lost his job and my hours have been reduce. Bank of America is telling me because of the texas a6 law I dont qualify for the obama reduction in rate. My rate is now 9%. I have 80% ltv in my house. When I did a cashout i change my term from 30 years to 15 years. I have 12 1/2 year left on my home and I can not afford my mortgage. I have never been late on my mortgage payment. My credit score is not high any more and I know with the Obama plan you dont have to have a high credit score. What can I do???? HELP

Like | Dislike | Share | Posted: Thu, 10/22/2009 - 19:12 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi preluder!

Welcome to forums!

A similar query has been replied to in the given page: http://www.mortgagefit.com/Refinancing-and-Second-mortgage/Need-advice-p... . Take a look at it and I hope it will help you.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Thu, 02/21/2013 - 21:50

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Cash out refi 2005 I tried to refi with company from kansas. They said company had to be located in TX. Kansas company had best rate

Like | Dislike | Share | Posted: Mon, 03/05/2012 - 18:00

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi MC,

I personally think that a 15-year fixed at 3.5% APR will be a good option. As far as other options are concerned, you should get in touch with the lender for that.

Thanks

Like | Dislike | Share | Posted: Sun, 05/12/2013 - 22:33

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Well... even I haven't heard of any such law which states that you cannot refinance an existing HELOC with a 5/1 ARM in Texas. I think you should go with the loan officer who can originate the loan for you.

Like | Dislike | Share | Posted: Fri, 06/25/2010 - 02:04

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have just been told by my bank that once you do a Texas A6 loan or a loan considered Texas A6, and you refinance again even if is out of the 1 year perameter, you cannot wrap your closing cost into the new loan. Once an a6 always an a6. Even if the new loan is a rate refinance. Is this accurate.

Like | Dislike | Share | Posted: Sun, 09/27/2009 - 19:17 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Guest,

Rather than refinancing both the mortgages independently, you should refinance both of them into one. Refinancing the loans into a 30 year fixed won't make it a Texas A6 loan.

Like | Dislike | Share | Posted: Fri, 10/22/2010 - 02:07

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

we have had this loan for over 2 yrs and both B of A and InterBank Lending said they could not do it. our credit is excellent so i am still confused. they said they could not do it becauseit is a Texas A6 loan. is it because this is not my primary residence? it is a rental property.

Like | Dislike | Share | Posted: Fri, 01/14/2011 - 07:51

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for the quick response adonis. However, your comment seems to contradict others on this thread. Specifically the 'Once an A6, always an A6'. If an A6/HEL loan is refinanced, the new loan is also considered an A6/HEL. I believe this is special in Texas, where I reside.

When we got the A6/HEL, we didn't fully understand the future implications of how that loan limits our refinance options today. I want to make sure I do this refinance right, weighing all the future implications properly this time.

Like | Dislike | Share | Posted: Fri, 10/22/2010 - 07:20

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

It will be better if you could contact a Texas based attorney and take his opinion regarding Texas A6 law. He will better guide you in this regard.

Like | Dislike | Share | Posted: Mon, 06/06/2011 - 00:26

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I just spoke with a person at the Office of Consumer Credit Commissioner, and they informed me that combining my two notes would in fact make the new loan a first lien position A6/HEL loan -- with all the restrictions (and rates) that go along with that in Texas.

I'm likely gonna refi both notes separately as to not pollute my existing Rate/Term loan.

Like | Dislike | Share | Posted: Fri, 10/22/2010 - 08:03

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have a 1st and 2nd mortgage (to avoid pmi) from when we first bought the house 8 years ago. We also have a pool home improvement loan where the lender took a 3rd position on the home. We want to refinance all 3 loans into one but the total combined will be above 80% of the value of the home. Do the Texas A6 rules apply in this situation? Or because none of these original loans are home-equity or cash-out refis can the combined new loan exceed 80%? Thanks for any info you can provide!

Like | Dislike | Share | Posted: Wed, 08/18/2010 - 08:27 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We are in foreclosure and we are trying to refi to a lower rate to keep our home. Lender said although we are underwater we can not refi because we had a cash out 9 years ago. What is the tx law on this?

Like | Dislike | Share | Posted: Mon, 08/20/2012 - 12:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As far as I know, once you take out a cash out loan, it will remain a cash out loan. In that case, the second loan that you've taken out will be considered as a Texas A6. You can contact your lender and he will help you know whether or not it is a Texas A6 loan.

Like | Dislike | Share | Posted: Fri, 04/30/2010 - 03:11

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm from Brownsville, Texas and want to accomplish to things: 1)Get cash to purchase a residential lot 2) [url=http://www.mortgagefit.com/refinance.html]Refinance[/url] my current mortgage to lower my interest rate. I have have excellent fico scores of 770 and my debt on the house is only 35k and it's valued at 85k. I currently have an FHA loan and wanted to know who I can go with to get an FHA Cash-Out refi with in Texas or how to best accomplish the my two goals above?

Like | Dislike | Share | Posted: Thu, 02/21/2013 - 09:29 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I recently tried to obtain cashout mortgage everthing was fine until I told him a lived in a rural area. He stated I didnt qualify because I dont have available natural gas.. I have propane which if I'm not mistaken is a natural gas. I also have a septic system they said I had to have Municipal sewer. So I'm being discriminated against because I live in the country.

Like | Dislike | Share | Posted: Tue, 07/27/2010 - 08:42 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi christian!

Welcome to forums!

Your query has been replied to in the given page: http://www.mortgagefit.com/predeal/about55013.html

Please take a look at it. I hope it will help you.

Sussane

Like | Dislike | Share | Posted: Tue, 08/21/2012 - 03:01

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

To Joelle,

You lender should have informed you about that such a loan is not allowed when you already have an A6 mortgage on your property. You should speak to your lender now and check if anything can be done now.

To Red Neck,

You should speak to some of the other lenders of your locality and apply for a mortgage with them. If you meet their requirements, you would be able to qualify for the loan. You can even speak to the lenders of this community and seek a no obligation free mortgage quote from them. This will give you a fair idea about the rates and terms that you can get when you apply for a loan.

Like | Dislike | Share | Posted: Wed, 07/28/2010 - 02:09

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

As it's a rental property, things could be different and the lender may not grant you the loan.

Like | Dislike | Share | Posted: Fri, 01/14/2011 - 22:33

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We refiance our home in state of texas about 3 years ago, I would like refiance to bring down our mortgage payment. But I been told due A6 law in the state of Texas that I'm not eligible for refiance until a built more equity for equity )right now our ltv is about 80% and I need to be at 87% or more of my ltv. Could somebody look at this situation and let me know. Thanks, Pete Graham

[size=9:4a0099d09f][color=Red:4a0099d09f][Email address deleted as per forum rules. Thanks.][/color:4a0099d09f][/size:4a0099d09f]

Like | Dislike | Share | Posted: Sat, 06/04/2011 - 10:45 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I just heard the minimum to borrow on a cash out in Texas is $130,000?
Any one know if this is correct?

Like | Dislike | Share | Posted: Sun, 01/23/2011 - 07:45

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Hector!

Welcome to forums!

You can refinance both the loans into one and take advantage of the low rates. However, you should have equity in your property. Apart from that, you should meet all the other required criteria of the lender in order to get the refinance.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 10/03/2012 - 23:07

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Motorev,

As this is a legal matter and the laws of Texas vary from other states, it will be better if you could contact a real estate attorney and take his opinion in this matter.

Like | Dislike | Share | Posted: Sun, 12/18/2011 - 22:35

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a first mortgage (used to purchase property) and a second mortgage which was a construction loan, paid to the contractor, for substantial home improvements (including additional sq ftge). Construction was completed in 2004.
I'd like to consolidate both loans into a lower-rate 15 year fixed loan. Is this a "cash out" loan under Texas law??

Like | Dislike | Share | Posted: Thu, 10/08/2009 - 11:11 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

"Texas (a)(6) loans are cubject to the following restirctions: The (a)(6) may not be used to acquire the property or to finance construction.

What property is "the property" referring to? The subject property or other?

Like | Dislike | Share | Posted: Wed, 01/12/2011 - 10:04 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A bank is declining my loan, I am a widower, because I want to use the funds from the loan to build another smaller home. Nothing else is affecting the approval. Credit is very good, loan to value is 60% and ratios are excellent. It is going to take about a year for us to build a second smaller home. In the meantime, I will still be living in the home which will be put up for sale. The Banks contention is that there is a risk of us not selling the current primary residence before I complete the new residence and in their eyes they believe I would not have two homesteads. I don't understand. The Central Appraisal District states that I can only have one homestead in the state of Texas and why can't I have two properties. Can someone shed light on this.

Like | Dislike | Share | Posted: Wed, 01/12/2011 - 10:23 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

A bank is declining my loan, I am a widower, because I want to use the funds from the loan to build another smaller home. Nothing else is affecting the approval. Credit is very good, loan to value is 60% and ratios are excellent. It is going to take about a year for us to build a second smaller home. In the meantime, I will still be living in the home which will be put up for sale. The Banks contention is that there is a risk of us not selling the current primary residence before I complete the new residence and in their eyes they believe I would not have two homesteads. I don't understand. The Central Appraisal District states that I can only have one homestead in the state of Texas and why can't I have two properties. Can someone shed light on this.

Like | Dislike | Share | Posted: Wed, 01/12/2011 - 10:23 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Where is it posted that you can not use the funds from an cashout refi to build another home?

Like | Dislike | Share | Posted: Wed, 01/12/2011 - 11:04 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

is there a limit of 3% fees when it is an investment home orr second home?

Like | Dislike | Share | Posted: Wed, 02/03/2010 - 17:34 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a primary mortgage and a HELOC that are both with the same lender. Can I refinance to take advantage of the low rates and roll both debts into the same refinance? I don't want cash out. I just want to refinance the primary and roll the debt on the HELOC into the same NEW mortgage.

Like | Dislike | Share | Posted: Wed, 10/03/2012 - 10:06 | Post subject:

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