Posted on: 14th Mar, 2007 11:37pm
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 to get approved for Texas a6 cash out refinance are listed below.
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.
The minimum credit score required for this is 620. In addition to this, the maximum permissible DTI (debt to income) ratio is 45%.
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.
A continuous employment of 2 years is required. For self-employed persons, proper documentation of income is required.
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.
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.
We have refinance our home over 7 years ago and took cash-out. Can we refinance again with cash-out on the same home in Texas?
Hi Joey,
If you have equity in your property, then you will be able to refinance it again. As Texas laws are different, you should speak to a mortgage broker before you apply for a cash out mortgage.
If you have equity in your property, then you will be able to refinance it again. As Texas laws are different, you should speak to a mortgage broker before you apply for a cash out mortgage.