topic Refinancing a rental home... cash out in Texas? in Mortgage Loans

Refinancing a rental home... cash out in Texas?

amymcdonald — Tue, 06 Jul 2010 18:47:13 GMT

I have been purchasing a small home in a rural community for eight years now, on a 10-year note. The loan is at 8.5% interest, and is owner-financed.

Here's the question. I would like to re-finance the home (I do not live in it, it is rented) for another 10 to 30 years (I'm flexible.) I want to do this so I can have a cash-out payment to pay off some other debt. Is this allowed in Texas? I know there is the 80/20 rule, but I can't seem to find any info on getting money back when you already nearly have it paid for.

Thanks!

Re: Refinancing a rental home... cash out in Texas?

ShanetheMortgageMan — Tue, 06 Jul 2010 19:05:04 GMT

The cash out restrictions apply to homesteaded properties in Texas, a non-owner occupied home is not homesteaded (or shouldn't be). Under current mortgage guidelines you can do a cash out refinance on an investment property up to 75% of the home's value.

Re: Refinancing a rental home... cash out in Texas?

amymcdonald — Tue, 06 Jul 2010 19:10:57 GMT

Thanks so much, Shane. You are indeed the Mortgage man!

Is there a list of reputable lenders somewhere online?

Re: Refinancing a rental home... cash out in Texas?

ShanetheMortgageMan — Tue, 06 Jul 2010 19:32:14 GMT

Welcome. There isn't a list, however I'd start with recommendations from friends & family, compare with who you bank with, and also contact a local bank in the area that the home is in.