Good Morning - we have a customer that is wanting to purchase property in Texas using their primary residence in Washington as collateral. The home in Washington has both a first and second lien on it due to a HELOC. Right now the overall LTV stands at 100% but the lender would like to roll the HELOC in with the loan so the bank is not 3rd on the house in Washington and that puts the LTV at 103%. s the bank allowed to originate a consumer RE loan in Texas with an LTV of 103% and would it be considered a cash-out refinance since we are paying off the HELOC loan in Washington? I am still learning Texas law so I need some guidance with this.

You cannot loan over the purchase price plus closing costs, if they are purchasing a Texas homestead property. You would only have the amount of your vendor's lien to renew and extend into your deed of trust. You need to talk to your title company.