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 to get approved for Texas a6 cash out refinance are listed below.
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.
The minimum credit score required for this is 620. In addition to this, the maximum permissible DTI (debt to income) ratio is 45%.
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.
A continuous employment of 2 years is required. For self-employed persons, proper documentation of income is required.
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.
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.
Hi Julie,
Your query has been replied to in the given page:
http://www.mortgagefit.com/Mortgage-problems/What-is-a-Texas-cash-out-loan.html
Please take a look at it. I hope it will help you.
Sussane
Your query has been replied to in the given page:
http://www.mortgagefit.com/Mortgage-problems/What-is-a-Texas-cash-out-loan.html
Please take a look at it. I hope it will help you.
Sussane
When purchasing my home I did an 80/10/10 to eliminate PMI. I followed up with a Equity Loan for a pool (6 years ago). I would like to consolidate the three loans and then piggy back with an HELOC to assist with upcoming education expenses.
I am being told this is not possible. "Once a cash-out, always a cash out". My consolidate mortgage would be well less than 65% LTV! Is this really how the law works?
I am being told this is not possible. "Once a cash-out, always a cash out". My consolidate mortgage would be well less than 65% LTV! Is this really how the law works?
Welcome Guest,
As far as I know, in Texas, the law states that "once a cash out, always a cash out". You cannot change this. If you have equity in your property, then you may have to go for a cash out loan in this case and consolidate your debts.
As far as I know, in Texas, the law states that "once a cash out, always a cash out". You cannot change this. If you have equity in your property, then you may have to go for a cash out loan in this case and consolidate your debts.
I live in Texas and have been investigating the HUD Section 203(K) loan program to use for buying and rehabbing a second home for my retired parents to live in (not my primary residence). I was wanting to do some of the rehab work myself and subcontracting out the rest. I'm a skilled carpenter and rehabber but I do not work in that field (I'm a minister). I was told by a Texas loan officer who does 203(K) loans that the Texas A6 law would not allow me to do any of the work myself. Instead a registered contractor would have to be hired to do it all. I have verified that the 203(K) loan program does not have this stipulation-homeowners are allowed to do the reab work. Is what the loan officer told me a correct statement based on what you know about the Texas A6 law?
Welcome Motorev,
As this is a legal matter and the laws of Texas vary from other states, it will be better if you could contact a real estate attorney and take his opinion in this matter.
As this is a legal matter and the laws of Texas vary from other states, it will be better if you could contact a real estate attorney and take his opinion in this matter.
Cash out refi 2005 I tried to refi with company from kansas. They said company had to be located in TX. Kansas company had best rate
Hi Guest!
Welcome to forums!
If the mortgage lender in Kansas operates in Texas, then you can take out a mortgage from them as well. Normally it is better to take out a mortgage from a lender who operates in your state.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If the mortgage lender in Kansas operates in Texas, then you can take out a mortgage from them as well. Normally it is better to take out a mortgage from a lender who operates in your state.
Feel free to ask if you've further queries.
Sussane
i have a couple of questions.
1. 6+ years ago i co-signed a home equity loan for my mother-in-law. she went through a bank and it was a very quick concise process. jump to present day, she has decided that she wants to sell us her house, and apparently since i signed that loan i now already own the house so i an not eligible for a new home loan. to clarify i am not and have never been listed on the title of this property. i am told that the bank should have filed paperwork to have my name added to the title at the time of the original home equity loan. 2. the bank is suggesting that my only option is to have my mother-in-law deed me th house and then i can do a cash out laon and pay her the aggreed upon price. i have investigated this a little bit, and i am being told that once the deed is filed that i have to wait 6 months for 70% and 12 months for 80% cash out, but the bank is telling me that they can have the whole process closed inside of 2 months. i have plans to meet with a real estate attorney.
1. 6+ years ago i co-signed a home equity loan for my mother-in-law. she went through a bank and it was a very quick concise process. jump to present day, she has decided that she wants to sell us her house, and apparently since i signed that loan i now already own the house so i an not eligible for a new home loan. to clarify i am not and have never been listed on the title of this property. i am told that the bank should have filed paperwork to have my name added to the title at the time of the original home equity loan. 2. the bank is suggesting that my only option is to have my mother-in-law deed me th house and then i can do a cash out laon and pay her the aggreed upon price. i have investigated this a little bit, and i am being told that once the deed is filed that i have to wait 6 months for 70% and 12 months for 80% cash out, but the bank is telling me that they can have the whole process closed inside of 2 months. i have plans to meet with a real estate attorney.
Hi radmanzx,
Unless your name is listed on the property deed, you won't be considered as the owner of the property. As the loan is already in your name, you can only get the property transferred in your name. You can then get the existing mortgage refinanced in your name.
Thanks
Unless your name is listed on the property deed, you won't be considered as the owner of the property. As the loan is already in your name, you can only get the property transferred in your name. You can then get the existing mortgage refinanced in your name.
Thanks
I had a man from Chase tell me that I cannot do a refi on my home unless I do a cash-out because I refinanced in 2009 and did a cash-out to pay off the land. Once you refi with a cash out...you have to do a cash-out if you ever want to refi again????
Hi BKC!
Welcome to forums!
Rules are different in case of Texas. If you go for a cash out refinance, you may have to go for the same when you refinance the next time.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Rules are different in case of Texas. If you go for a cash out refinance, you may have to go for the same when you refinance the next time.
Feel free to ask if you've further queries.
Sussane
I am based in TX, if you want to click on profile to contact me. In TX once you do a cashout loan all loans are considered cashout.
We are in foreclosure and we are trying to refi to a lower rate to keep our home. Lender said although we are underwater we can not refi because we had a cash out 9 years ago. What is the tx law on this?
Hi christian!
Welcome to forums!
Your query has been replied to in the given page: http://www.mortgagefit.com/predeal/about55013.html
Please take a look at it. I hope it will help you.
Sussane
Welcome to forums!
Your query has been replied to in the given page: http://www.mortgagefit.com/predeal/about55013.html
Please take a look at it. I hope it will help you.
Sussane
I have a primary mortgage and a HELOC that are both with the same lender. Can I refinance to take advantage of the low rates and roll both debts into the same refinance? I don't want cash out. I just want to refinance the primary and roll the debt on the HELOC into the same NEW mortgage.