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Question:
DEC 12, 2011

The Info on Texas Refinance Limit

Is it true that in Texas you can refinance up to 80% of your equity value?

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Bill's Answer: Bills.com Resident Expert

To my knowledge, the 80% refinance limit in Texas also applies to home equity loans.

Quickly, Bills.com makes it easy to compare mortgage offers and different loan types — you never know! Please visit the Bills.com mortgage loan page and find a loan that meets your needs.

Based on research I conducted, there is no exception to the Texas Refinance limit, as the limit is imposed by state law. This limit was imposed to prevent consumers from overextending the equity in their homes and to protect them from predatory lending practices. The Texas Office of the Consumer Credit Commissioner offers a guide to home equity loans in Texas.

If you are interested in obtaining a home equity loan, I encourage you to visit the Bills.com Home Equity Resources page.

I hope this information helps you Find. Learn. Save.

Best,

Bill

Bills.com

Comments (6)


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Bills.com
January 13, 2009
No, you can only borrow 80% of the appraised value.
Zeb M.
January 12, 2009
Another Texas question, if I purchased the property for cash for $50,000 made improvements would I then be able to get a 1st mortage on the property at say 95% of its appraised value. Appraised value of $80,000 and get a 1st mortgage of $76,000?
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Bills.com
January 12, 2009
Might not be as easy as you put it. If I understand your statement correctly, you want to get a mortgage for the $50,000, put in $15, 000 of your own and then get a new mortgage to refinance the existing one to get the cash out? Texas has a limit of 80% LTV, meaning you can only take our loans upto $64,000 if your property is appraised at $80,000.00, so you would barely get only the amount that you invested in the property, nothing more.
Zeb M.
January 11, 2009
If I purchase a forclosure in Texas for say $50,000 and do improvements of say $15,000 can I then take out a new mortgage on the house of say $75,000 if the house has and appraised value of $80,000. Paying off the $50,000 first mortgage and leaving me $25,000 at the closing? Or some amount of cash back to me at closing? Thanks
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Bills.com
September 26, 2008
In Texas, FHA refinance loans for current homeowners are available only for primary residences and must fall into the set limit for their respective county. Existing homeowners looking to make repairs or retrofit their homes to make them more energy efficient can also quality for a FHA loan.
Johnny .
September 25, 2008
is there anyway to refinance with FHA, if i did a cash out REfI over a year ago? state of Texas
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