When You Keep Your Home In The Divorce And Have To Pay Your EX Their Equity…

In other words, if your home was worth $100,000 – the most cash you could get out on a loan would be $80,000.

This 80% rule is a Texas law for homeowners in Texas.

…However, there is one loan that will allow you to get more than 80% of your cash out. It’s called an Owelty loan.

You can get an Owelty loan when you are getting a divorce, and one of the conditions of your divorce is that you have to pay your ex a portion of the equity in your home (even if it exceeds 80%).

I’ve done many Owelty loans. We treat them as a regular rate and term refinance (not cash out rates – which are higher).

So, if you are in this situation, or you know someone who is – and your loan officer has told you that you don’t have enough equity to cash out the ex-spouse, just tell them that you need an Owelty loan.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett