Jump to main content

# When do I select Texas Home Equity Four Condition Refinance?

Select if the transaction is a Texas Home Equity loan as defined by the 50(f)(2) amendment to the Texas constitution to include four additional conditions for refinance in effect January 1st, 2018.

The four conditions include: 1) The transaction is not closed before the first anniversary of the date of the loan getting refinanced; 2) The transaction does not include cash out other than funds to refinance a non-50(a)(6) loan in addition to a 50(a)(6) loan and actual costs and reserves required by the lender to refinance the debt; 3) The refinance of the extension of credit is of a principal amount that when added to the aggregate total of outstanding principal balances of all other indebtedness secured by the home does not exceed 80% of the fair market value on the date of closing; 4) The lender provides a required disclosure not later than the third business day after the date of the loan application to the lender and at least 12 days before the date of the refinance.