This is a question for all the Texas bankers. How does your bank structure Bridge loans? Do you document them as a Home Equity Loan following the HE rules?

Any help or discussion will be appreciated.

You structure the deed on the existing homestead with springing language that is not effective until the existing house is no longer their homestead. Title will not insure that deed. In case they never actually move out, then all you have for security is the new residence.

The only way to do a HE in this situation is to make them a separate HE loan as you cannot have additional collateral on a TX HE loan.