Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

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

Author: Jessica Bennet
Community Mentor
Ask Jessica
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 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.
Posted on: 14th Mar, 2007 11:37 pm
hi, has anyone here heard of texas a6 cash out refinance rules or something like that? i am looking to refi my property in texas. any info will be helpful.
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?
Posted on: 19th May, 2013 07:50 pm
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.
Posted on: 19th May, 2013 11:44 pm
Page loaded in 0.241 seconds.