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Texas Cash-Out Mortgage Lenders- Same Day Pre Approvals

TEXAS CASHOUT Mortgage LenderS Overview
POPULAR TEXAS REFINANCE PAGES INCLUDE:
Texas Bad Credit Cash OUT Refinance UP To $500K In 
TEXAS DEBT CONSOLIDATION CASHOUT MORTGAGE REFINANCE UP TO 500K
Texas Bad Credit Mortgage Refinance after bankruptcy

A Texas Section 50(a)(6) cashout mortgage loan is a loan originated in accordance with and secured by a lien permitted under the provisions of Article XVI, Section 50(a)(6), of the Texas Constitution, which allow a borrower to take equity out of a homestead property under certain conditions. Texas Homeowners who have built a substantial amount of equity in their homes may be eligible to refinance their mortgage loan and cash out some of their equity. This is known as a cash-out refinance.

How Does A Cash-Out Refinance Work? Cash-out refinances are similar to other refinances, except the homeowner actually borrows more than they owe on their current loan. For example, say your Texas home is worth $500,000 per the Texas certified appraisal, and you now owe $200,000 on your current loan.  If you get the maximum cash out allowable in Texas up to 80% you could get up to $400,000. After paying off your current 200,000 mortgages you would cash out up to 200,000 – any other liens on your home + closing cost. 

TEXAS CASHOUT MORTGAGE TYPES

  1. Texas Rate-and-term refinancing to save money. Typically, you refinance your remaining balance for a lower interest rate and a loan term you can afford. (The Texas loan term is the number of years it will take to repay the loan.)
  2. Texas Cash-out refinancing, in which you take out a new Texas mortgage for more than what you owe. You take the difference in cash or you use it to pay off the existing mortgage loan.

There are many other OtherTexas homeowners refinance. For example, you may want to replace an adjustable-rate mortgage with a fixed-rate loan, to settle a divorce or to eliminate PMI mortgage insurance.

TEXAS CASHOUT MORTGAGE Texas Cash Out Mortgage LenderS Eligibility

Unless otherwise notified in writing, all Texas Cash Out Mortgage Lenders are eligible to sell and/or service Texas Section 50(a)(6) loans as long as the Texas Cash Out Mortgage Lender meets the eligibility criteria specified in Texas Constitution Section 50(a)(6). A Texas Cash Out Mortgage Lender that intends to sell Texas Section 50(a)(6) loans originated by a third-party originator is also responsible for ensuring that the originating Texas Cash Out Mortgage Lender qualifies as an “authorized Texas Cash Out Mortgage Lender” under Texas Constitution Section 50(a)(6).

Loan Origination and Compliance

In addition to Fannie Mae’s other origination and compliance requirements for Texas Section 50(a)(6) loans in this chapter, Texas Cash Out Mortgage Lender agrees to the following:

Requirement
The borrower’s first payment must be due no later than two months after closing.
For purposes of the compliance with the acknowledgment of the “fair market” value of the homestead property requirement, the “fair market value” must be based on an appraisal and the appraisal must be attached to the written acknowledgment. See B5-4.1-03, Texas Section 50(a)(6) Underwriting, Collateral, and Closing Considerations for Fannie Mae’s appraisal requirements.
The proceeds from a Texas Section 50(a)(6) loan must not be used to acquire or improve the homestead if a loan for that purpose could have been made under a different provision of the Texas Constitution.Fannie Mae has no other restrictions on the use of the loan proceeds.
If the new loan is a Texas Section 50(a)(6) loan refinance transaction originated to cure a failure in the original loan to comply with Texas Constitution Section 50(a)(6), then the new loan is eligible for sale to Fannie Mae provided that it complies in all respects with Fannie Mae’s requirements. However, unless a refinance transaction has been completed to cure a failure in the original loan transaction to comply with Texas Constitution Section 50(a)(6), a Texas Section 50(a)(6) loan is ineligible for sale to Fannie Mae if the Texas Cash Out Mortgage Lender has either identified or been notified by the borrower of a failure to comply, whether or not there has already been a cure or an attempt to cure the failure to comply.
DU does not contain the specific eligibility rules needed to determine eligibility of Texas Section 50(a)(6) loans under Texas Constitution Section 50(a)(6) or the Selling Guide.Texas Cash Out Mortgage Lenders must determine whether refinance loans secured by properties in Texas are eligible for sale to Fannie Mae, and should be aware that even though a loan may receive an “Eligible” recommendation, the loan may not comply with Texas Constitution Section 50(a)(6) or be eligible for delivery according to Texas Constitution Section 50(a)(6) or the Selling Guide.

Texas Cash Out Mortgage Lender Certification

By sale of a Texas Section 50(a)(6) loan to Fannie Mae, the Texas Cash Out Mortgage Lender represents, warrants, and certifies that with respect to all of the Texas Section 50(a)(6) loans delivered to Fannie Mae, whether or not originated by the Texas Cash Out Mortgage Lender:

  • All Texas Section 50(a)(6) loans were originated pursuant to written processes and procedures that comply with the provisions of the Texas Constitution applicable to mortgage loans.
  • The Texas Cash Out Mortgage Lender has in place a specific process for the receipt, handling, and monitoring of notices from borrowers that Texas Cash Out Mortgage Lender (or the mortgage originator, if Texas Cash Out Mortgage Lender is the servicer but not the originator) failed to comply with the provisions of the law applicable to Texas Section 50(a)(6) loans. Such process must be adequate to ensure that the Texas Cash Out Mortgage Lender will correct the failure to comply by one of the authorized means no later than the 60th day after the date the Texas Cash Out Mortgage Lender is notified of the failure to comply by the borrower.
  • An attorney familiar with the provisions of Texas Constitution Section 50(a)(6) was consulted in connection with the development and implementation of the processes and procedures used for the origination of the Texas Section 50(a)(6) loans.
  • To ensure ongoing compliance with the law applicable to loans authorized by Texas Constitution Section 50(a)(6), the processes and procedures used for the origination of the Texas Section 50(a)(6) loans will be reviewed by the Texas Cash Out Mortgage Lender regularly and will be updated and revised, as appropriate pursuant to clarifications of the law, on a regular and continual basis.

Texas Cash Out Mortgage Lender’s and Servicer’s Obligations to Maintain Procedures for Curing Violations

Texas Cash Out Mortgage Lenders and servicers must have specific processes in place to cure any failure to comply with Texas Constitution Section 50(a)(6) identified with respect to a loan sold to or serviced on behalf of Fannie Mae by one of the authorized means, as required by the “Texas Cash Out Mortgage Lender Certification” requirements described above. A Texas Cash Out Mortgage Lender’s or servicer’s failure to cure within 60 days after being notified of a failure to comply may, under Texas law, result in the forfeiture of all principal and interest due under the Texas Section 50(a)(6) loan. However, any action taken, or not taken, in connection with a failure to comply with Texas Constitution Section 50(a)(6), even if such action is a result of the Texas Cash Out Mortgage Lender’s or servicer’s effort to cure a failure to comply, that results in any of the following constitutes a breach of the Texas Cash Out Mortgage Lender’s selling representations and warranties and/or servicing obligations and requirements:

  • a forfeiture of any principal or interest due under the mortgage loan;
  • invalidation of the mortgage as a first lien;
  • abatement of accrual of interest and the borrower’s obligations under the mortgage loan;
  • reduction in the principal amount of the mortgage loan; or
  • any modification of the amount, interest rate, term, or other provision of the mortgage loan.

Such action, taken or not taken, shall be deemed a failure to correct a significant defect and/or a servicing defect that permits Fannie Mae to exercise any of the remedies provided in the Texas Cash Out Mortgage Lender Contract, including the right to require repurchase of the loan.

If the Texas Cash Out Mortgage Lender or servicer receives notice from a borrower that a Texas Cash Out Mortgage Lender (or the mortgage originator, if the Texas Cash Out Mortgage Lender or the servicer is not the originator) failed to comply with Texas Constitution Section 50(a)(6), the Texas Cash Out Mortgage Lender or servicer must immediately, but no later than seven business days after receipt, take the following actions:

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