Cash out refinance for duplex which is my homestead

[Malaree Thompson]

I own a duplex in Dallas, TX.  There is an apartment upstairs which I rent out which is 1/3 of the building. I live downstairs and claim this as my homestead. My insurance and property taxes are also set up in this manner.  I applied for a cash out refinance on my mortgage and was told I could not because the property is a duplex which I claim homestead. Is this correct?