Out of State lender

Posted By: workerbee

Out of State lender - 05/09/18 03:23 PM

We are not in Texas, we have an applicant in Texas who wishes to either do a 1st lien HELOC paying off current loan or a cash-out transaction paying off current mortgage and providing funds for a family member to buy a house.

My understanding is that we would not be able to do either of these if we are not in texas because cashout loans are considered helocs?
Posted By: rlcarey

Re: Out of State lender - 05/09/18 03:33 PM

You can do either a HELOC or a closed-end cash out loan in Texas. However, if this is their Texas homestead (i.e., they reside there or it is the only property that they own in Texas regardless of residency), then it will be a Texas Home Equity loan which has a great number of specific State laws and requirements. If you don't normally lend in Texas, you need to get a Texas attorney involved that is familiar with the rules and documentation requirements for a TX HE loan.