Texas has weird home equity loan rules:

80% Maximum Home Equity Rule:  This means your home equity loan can’t exceed 80% of your home’s value.  So if your home is worth $150,000, your Texas Home equity loan can’t exceed 80% or $120,000.   (Investment home equity loans guidelines are less strict.  You can pull more equity out of an investment property; up to 85-90% depending on your credit.)

3% Finance fee limit:   The total fees charged by everyone (lender, underwriter, bank, title, attorneys, etc) can’t exceed 3% of the loan amount.   Most home refinances require a title policy which will run between 0.75-1% of your loan amount.   The 3% rule is supposed to curb excessive fees, but in realty, it makes it harder for people with smaller home values to get access their equity.     We at mylendingplace have some bank programs that will pay your closing costs; allowing you to net more.   Naturally, these rates are slightly higher.   Read the rest of this entry »