Texas HELOC rules on non-primary residence

[Adam Irvin]

I’m looking for some insight into a HELOC in the great state of Texas. I’ve been told that I can only take out a HELOC on my “homestead” or primary residence due to Texas laws. My goal is to have a HELOC on my rental property, which currently holds about $80-100K in equity. Th goal being to take that money, as needed, to fund cash purchases of more investment properties, then refi and pay off the HELOC. However, I can’t do any of that, if the state won’t allow me to take a HELOC on my non primary residence... Can anyone shed some light on this for me? Thanks in advance.

[Jim Cummings]

@Adam Irvin. I believe you have stated the Texas HELOC law correctly.

Long Term: Lobby your state legislator for a change in the Law.

Short Term: Cash Out Refi! 

[Jason Smith]

I am running up against the same thing. I did talk to PenFed today and they confirmed that THEY do HELOC's in Texas on investment property. She even ran the numbers a bit for me. Whats not clear is if there underwriting will stop it from going through or if they are just using a different line of credit product that they are just calling a HELOC as to not confuse customers

[Kraig Kujawa]

@Jason Smith interesting. Wells Fargo told me the same thing, then after the whole process, said the underwriter denied it. Please keep us posted. If yours goes thru, I might have a hot date with PenFed