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

Posted on: 27th Sep, 2007 04:31 am
The TX property is not homesteaded and the lender is a nationwide lender.
no cash out refinance on texas second home is not possible.
Posted on: 27th Sep, 2007 04:52 am
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
Posted on: 27th Sep, 2007 04:59 am
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.
Posted on: 27th Sep, 2007 05:41 am
Hey this is getting says it can be done while the other says no..are there any other opinions?
Posted on: 27th Sep, 2007 06:05 am
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.
Posted on: 27th Sep, 2007 06:25 am
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.
Posted on: 28th Sep, 2007 04:47 am
Cedric is right
Posted on: 03rd Oct, 2007 09:10 pm
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