Cash-Out Refinance Question In Texas
Hey,
I was hoping somemone could give me some advise. My goal is to refinance my house and cash-out so I can pay off my credit card and other debt. I currently own 105,000 and the property will probably appraise for 135000. I would like to cash out my equity to pay my bills however in Texas they say there is a 80% rule when doing a cash out. Does anyone have a suggestion on how I can pull out my equity to pay off some off my debt? My wife is currently on the deed and I am not. I can quit claim if necessary. I would appreciate any advise to help me out.
Thanks in advance,
Sami
If it appraises at $135K and you owe $105K there is little chance of much cash if you have the 80% rule. Not enough equity and not worth it to refinance unless you are getting lower rates or lower payments.
Thanks.........I am aware that there is not enough equity to make a re-finance worth it. I'm trying to see if anyone knows of a creative way to work around this? I am open to any suggestions.
That is an easy one. Go and get a Home Equity Line of Credit (HELOC), or obtain a second mortgage.
Best of luck,
Andrew
Thanks Hyundai..........much appreicated for the advise.
100% financing should be possible even in Texas, especially if it is Owner Occupied as this appears to be.
I guess the bid dillima I have is that the deed and loan are in her name currently. If I get on the deed and try to get a second mortgage or a HELOC won't my wifes credit have to be considered? Here credit is in the tubes because of a divorce so I'd like them to only take my credit into consideration. Any other suggestions? I am open to any creative ideas.
What are your credit scores?
Has she tried to get a loan on the house yet to see if she will qualify?
I think a heloc is the better way to go.
My Credit scores are around 650-700 range. Hers I would just say are down the tubes and is not an option. I don't think I will have a problem if i'm able to use the equity to pay off my debt but I can't have her on the loan app. We own the house and are just trying to find the best way to pay off my debt so that it will put us in the best possible situation.
Any other suggestions would be appreicated.
Quote:
On 2004-11-01 11:30, commercialking wrote:
100% financing should be possible even in Texas, especially if it is Owner Occupied as this appears to be.
That is true for a purchase but in Texas your limited to 80% when pulling out cash. http://www.fc.state.tx.us/Home%20Equity/ch153.htm
Infact OO is the limiting factor. If it was NOO then they would be limited buy lender guidelines not law.
Quote:
On 2004-11-01 09:12, hyundai wrote:
That is an easy one. Go and get a Home Equity Line of Credit (HELOC), or obtain a second mortgage.
Sorry that will not get around the 80% Texas law.
Before November 4, 1997 you could not get an equity loan in Texas. [ Edited by lacashman on Date 11/02/2004 ]
So is it safe to assume that I can't do anything to tap into a mojority of my equity? I know there has to be some work around to this.....I just need to find a loophole.
You could buy another property with a high LTV OO loan then move it to that home. It is now your primary.
Then your other home is NOO. It is my understanding that the 80% rule will no longer apply. But please check with a broker who is expeinced in Texas.
You may want to post your question here http://aireo.com/bbs/index.shtml
If your wife we're an option you could sell the house too her for 135000 and and you'd get the difference back at closing. Then you wouldn't be on the mortgage and she'd have to qualify on her own without you.
I'd talk to a mortgage broker though
Quote:
On 2004-11-06 14:38, bhunter70 wrote:
If your wife we're an option you could sell the house too her for 135000 and and you'd get the difference back at closing. Then you wouldn't be on the mortgage and she'd have to qualify on her own without you.
I'd talk to a mortgage broker though
Have you done this?
Reason that I ask is it is not an arms length transaction and my guess is the lender will not go for it.
No - I believe someone in my area just did this though.
The husband bought the house in foreclosure, fixed it up and then sold it to his wife. I just know this from the list of recent sales in the area and have never spoken to him about it (to be honest they may not even be married). They do live there though as a family.
I won't ask him about it either - not a friendly guy. When I noticed this I thought he was either extremely bright or crooked.
Not sure if I clarified this. But my wife is on the mortgage and deed. I am not as she bought it before we got married. Here credit has gone down the tubes. My credit is good to okay only because I have high debt. I'm trying to use the equity she has built to pay off my debt and put us in much better shape.
To split hairs a bit...
The equity and the home is your wife's property. It is not 'your equity' based on the title. As a married couple you could have a claim but...
Hence you need to deal with the ownership before you can deal with removing equity. The person on title can not obtain a loan. You could refinance and transfer the title from her to you. Depending on the state it can be done without her credit being a factor (community property states are an issue but if TX is not one then you should be able to put everything in your name alone).
John
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