Texas Home Equity Loan Restrictions

Overview. A Texas Section 50(a)(6) loan is a loan originated in accordance with and secured by a lien permitted under the provisions of Article XVI, Section 50(a)(6), of the Texas Constitution, which allow a borrower to take equity out of a homestead property under certain conditions.

home equity loans and HELOCs in Texas. Here in Texas, special rules apply to home equity loans and HELOCs. The good news is that most of them were enacted in order to protect consumers. Some of the rules seem complex, so we’ve summarized the main ones to help keep it simple: Debt Total Limits.

How To Lower Mortgage Payments Without Refinancing A lower monthly mortgage payment is always welcome. That means you may have more home equity. One way to tap it without selling your home is to refinance and take out cash. Thirty-year fixed-rate.

The Trump administration is considering a rule change that would make it easier for American companies to stash money.

Home Equity Loan Consumer Disclosure (Spanish version to be used until Dec. 31, 2017): A lender whose discussions with the borrower are conducted primarily in Spanish for a closed-end home equity loan may rely on this translation of the consumer notice developed under the requirements of Texas Finance Code 341.502, as authorized by 7 Texas.

Cash Out Refinance Versus Home Equity Loan

The home must be in Texas, not zoned agricultural and be single family, owner-occupied. That includes houses, condos, townhomes or duplexes. CUTX does not do home equity loans or mortgages for mobile homes or manufactured homes. Borrowers can only have one Home Equity Loan at a time.

Texas law does not permit more than one home equity loan to be issued for the same house at the same time. If you have an equity loan with an outstanding balance, you must pay off the entire amount or refinance it into a new home equity loan. This applies no matter how much equity your house possesses. One year, one loan.

The following are some of the key requirements and restrictions for texas home equity loans. In Texas, the total mortgage debt, including the amount of any existing mortgages plus the projected home equity lien (whether cash out re-fi or HELOC), cannot exceed 80% of the home.

Another would let homeowners convert their home equity loans into regular mortgage loans. The roots of the lending restrictions can be traced back to the late 1830s, when Texas was still a republic.

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