Texas financing - Posted by Jasonrei

Posted by Jim Kennedy - Houston, TX on October 02, 2000 at 14:28:16:

Yes, I may have several possibilities for you. Call me at 281-398-0505 (home office) or 281-222-6436 (cell) and I’ll see if I can be of help.

Best of Success!!

Jim Kennedy,
Houston, TX

Texas financing - Posted by Jasonrei

Posted by Jasonrei on October 02, 2000 at 11:45:22:

Please review the following:

My dad wants to borrow some money against his house.
Value: $60K
Current loan: $23K give or take, at 9.875%, maybe 5 or 6 yrs left
He would like to get $20-25K.
His credit is good, just doesn’t have much credit history. Total debt excluding his house note is less than $3000.

He’d like to refinance the entire thing for $45k for 15 yrs. But I don’t know if he can do that. I called 2 big lenders in the area but they couldn’t tell me if that was possible! It’s not something they ever do so they don’t know. They say they could give him an equity loan for the $20K plus, but I don’t like the terms.

Please give me some input on this. The $20+K will be used for real estate investments.

Re: Texas financing - Posted by Bud Branstetter

Posted by Bud Branstetter on October 02, 2000 at 16:50:46:

Jason,

Texas is one of those states with strong homestead laws. As such you can only refi the balance on your loans. You can only get money out by doing an 80% max home equity loan. As a change to the law for the home equity the foreclosure becomes judicial vs the regular non-judicial. There are also about 20 things that you have to do or be to do a home equity loan. Any onther loan above that is in reality non-enforceable. You can still do home improvement loans and then refi both into one. I haven’t seen anyone do it but I’m sure they have ; is to do a valid home equity loan then refi both loans.

Where in Texas? (nt) - Posted by Jim Kennedy - Houston, TX

Posted by Jim Kennedy - Houston, TX on October 02, 2000 at 12:42:54:

.

Re: Texas financing - Posted by Jasonrei

Posted by Jasonrei on October 02, 2000 at 18:06:47:

Bud,

That certainly is something to look into. What you’re saying is if my dad gets a 2nd, he may be able to (at the same closing perhaps?) get a new loan to pay off the existing two. That is a very good idea, if a lender will go for it. If the terms on the 2nd are good enough (low cost to get the loan, very small prepayment penalty, etc.) that may be the best option. Thanks!

Re: Where in Texas? (nt) - Posted by Jasonrei

Posted by Jasonrei on October 02, 2000 at 14:14:40:

Jim, in Houston.
Do you have a contact?

Re: Texas financing - Posted by Bud Branstetter

Posted by Bud Branstetter on October 02, 2000 at 22:50:42:

As I said I don’t know of any that have been done. The question to ask is how long the home equity loan has to be in place to refi. Many of the home equity loans are no cost at 1 point over regular rates. Check about early payoff.