The Lone Star State of Texas. In Texas we do many things a little different then the rest of the world. We talk a little different. We are the only state that was once it’s own country. We have a pride of just being from Texas. You show a child in a different country a map of the United States and one of the first things they recognize is Texas. Texas is just set apart.

In Texas we even do our home mortgages a little different then the other states. Many states have what is called a Cash Out loan. We have a Texas Cash Out loan. In Texas there are rules that are specific to our state. These rules help protect you as the consumer. One of these rules is the 12 Day Rule. The 12 Day rule states that you must wait a minimum of 12 day from the date of application on a Texas Cash Out loan before you can close. The reason for this is that it is a big step to put up your hard earned equity in your home as collateral. The Texas Department of Savings and Mortgage Lending wants you to have at least 12 days to make sure that this is the right decision for you and your family.

Another Texas specific rule is that you can only borrow up to 80% of your home’s appraised value on a Texas Cash Out. This also protects your hard earned equity. It keeps people from over borrowing against their homes. This helps us in many ways. States like California do not have rules like these to protect their consumers. In most places in California the majority of people rent because of the highly over inflated housing prices due to over borrowing.

Our process on HELOCs is a little different as well. All the rules for the Texas Cash Out apply but there is more. Your HELOC can equal half of your homes’ appraised value, yet the line of credit may not exceed the 80% CLTV. This again is to protect your investment in your home.

Even though some of the rules governing mortgages in Texas inconvenient or seem a little extreme, they are here for you. Contact Us now and one of our loan officers can explain any of the special laws and rules governing mortgages in the great state of Texas.