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
Texas renters are spending more than 30% of their incomes on rent. It can be…
Do you need cash out of your home, but you don’t want to refinance the…
The bad news is that according to Redfin, 38% of U.S. renters don’t believe they’ll…
Are you planning to use a gift for the down payment or closing costs when…
Do you have investment property, and would like to pull cash out of your property?…
Do you need cash out of your home, but you don’t want to refinance the…
