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Renovation loan cash out laws in Texas

Posted on: 17th May, 2010 10:59 am
I recently renovated my house using a renovation loan (not a home equity). Its in Texas and we refinanced our first and rolled the improvements into one loan. It has the same interest rate as a typical mortgage. Draws are in the form of a check and are made payable to me and my contractor. Does this fall into the cash out laws in Texas...once a cash out, always a cash out?
Hi michaelbwinfrey!

Welcome to forums!

As far as I can understand, your loan will be considered as a cash out loan. However, this loan will not be considered as a Texas A6 loan. I would suggest you to check out with your lender whether or not it would be considered as a cash out loan.

Feel free to ask if you've further queries.

Sussane
Posted on: 18th May, 2010 02:11 am
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