In Texas we have some unusual rules when it comes to getting cash out of our homes.
For owner occupied residences, we are limited to 80% max loan to value ratio.
When it comes to a divorce, if one spouse is keeping the house they will often have to pay the departing spouse their share of the equity in the home. A cash out mortgage is often necessary to get this done.
However, the traditional Texas Home Equity loan could make that difficult due to the cap at 80% of the available equity.
Enter the Owelty loan. This is specifically for a divorce where cash is needed to pay the departing spouse. You can get cash out to pay off the departing spouse, even if the loan amount exceeds 80% LTV.
You would simply have the attorney handling the divorce work up an Owelty Agreement as part of the decree.
Not many loan officers know this loan exists, so if you find yourself in this situation – give our office a call. We can help you!
That’s it for today!
Thanks for reading!
Brett