cash out investment property TX

hi cinnamon,

if there's enough equity in the property, a cash-out refinance is possible. however, since this is an investment property the owner occupancy rate will be taken into consideration before the loan is approved. there are lenders in this community and you can go for a no-obligation free mortgage consultation with them. they will assess your credit scores, the owner occupancy rate, etc. and will let you know if you can qualify for a cash-out refinance.

2008 i did a cash out refinance(home equity loan)at a higher than what i would like interest rate. in 2008 the property was my primary residence. later in 2008, i converted it to investment property. 2010 i have been told that i cannot do a refinace on my investment property because i have a cash out loan in 2008. is this true?

I haven't heard of any such rule. However, it will depend upon the lender's discretion whether or not he will allow you to refinance the mortgage for an investment property.

That is correct. In the state of TX, if you ever took cash out on the property (EVER!) and it is an investment ptoperty, you cannot do another cash out. The only way it can be considered is if you transfer your homestead exemption on your primary home to this property which will mean that you will be taxed at a higher rate on your primary home.

It's called the TX 50(a)6 rule. Some people will tell you it does not apply to investment homes, but it does.