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The Info on Texas Refinance Limit

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

I know it's true that in the state of Texas you can only refinance up to 80% of your equity value. Is the same true for home equity loans in Texas? If so, are there any exceptions?

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Bill's Answer
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Highlights

  • Texas limits the amount a person can borrow against their property.

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

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6 Comments

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  • BA
    Jan, 2009
    Bill
    No, you can only borrow 80% of the appraised value.
    0 Votes

  • ZM
    Jan, 2009
    Zeb
    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?
    0 Votes

  • BA
    Jan, 2009
    Bill
    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.
    0 Votes

  • ZM
    Jan, 2009
    Zeb
    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
    0 Votes

  • BA
    Sep, 2008
    Bill
    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.
    0 Votes

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