Posted on: 27th Sep, 2007 04:31 am
The TX property is not homesteaded and the lender is a nationwide lender.
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.
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.
Hey this is getting confusing...one says it can be done while the other says no..are there any other opinions?
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.
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.
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.
I hope you understand.
Cedric is right
