Texas Cash Out Loan FAQ

Its late 2019 and interest rates have continued to remain low.  My crystal ball says we could see rates improve even further as we ring in the New Year 2020!  So, with rates low and our costs cheap we have a ton of clients hitting us up for Cash Out Refinances to take advantage of the low rates.

I have been compiling the most frequently asked questions regarding Texas Cash Out Loans and wanted to provide to new prospective clients a cheat sheet of info to help you decide if a Texas Cash out Loan is what you need.

Once again we are always ready to help new clients out- Click Here to get a Free Quote or Contact us Today to see if you qualify.

Q: Can I take out cash on my home in Texas?, other lenders are telling me I can’t.

A:  Yes, you can take out cash of ANY home you own in Texas.  Your primary home is the one we have to follow the Texas Cash Out Laws and if it’s an investment home, it’s even easier!

Q: How Much Cash can I get?

A: This really depends on how much your home is worth and how much you currently owe.  Texas Cash Out Laws limit us to be able to loan you 80% of the value of your home.  If your home is worth $250,00, then the max loan we can do is $200,000.  If you owe $150,000 on your current mortgage, then you have $50,000 in accessible equity.

Q: How Often Can I do a Cash Out Loan in Texas?

A: Texas Cash Out Laws allow only 1 loan to be done every 12 months.  This also includes a refinance with NO cash out after you have done a Texas Cash Out Loan previously.

Q: Can I also get a 2nd lien equity loan or HELOC?

A: No, Texas Cash Out Laws state that you can have only 1 equity loan against the home at one time.  So if you do a Texas Cash Out Loan you cannot have a HELOC or 2nd lien equity loan.

Q: I was told I had to close my Texas Cash Out Loan in a title company, is that true?

A: Yes, that is correct.  Per Texas Cash Out Laws a Texas Cash Out Loan must close in the office of an attorney or title company.  This is a bit of a hassle, but we make sure to accommodate this for you regardless of where you are located in the State of Texas.

Q: I heard Texas Cash Out Laws Changed recently, what was updated?

A: On January 1, 2018 the Texas Constitution was amended in an effort to allow beneficial changes to Texas Cash Out Laws:

1.  Previously if you did a Texas Cash Out Loan then every loan after that was also considered a Texas Cash Out Loan, even if you didn’t receive any cash at closing.  This was dubbed ” Once a Texas Cash Out, Always a Texas Cash Out”  Now you have to wait 12 months after doing a Texas Cash Out Loan and you can refinance using a regular rate and term refinance loan that does not have to follow Texas Cash Out Laws.
2. Texas Cash Out Loans may now be taken out on a property with an Agricultural Exemption.
3. The max fees were lowered to 2% of the loan amount and some fees are now excluded from this calculation – such as the appraisal and title insurance policies.

If you have any additional questions, give us a call at 512-271-6868.  Since we are Texas Cash Out experts we are here to make this an easy process from start to finish!

Eric Weishaar

President | NMLS# 207659