Acquiring a HELOC snag

[Bruce Ray]

I live in Texas and was told by the lender representative I qualified for a HELOC on my home. I was really excited because this was going to be an awesome investment stream. I received a phone call from the loan specialist who explained I could not have two home equity loan products on the same property. I did a cash out refinance on my house a few month ago to do some home improvements. I was told I could refinance my house (no cash out) and then apply for a HELOC. I share this because I had no idea this would happen. It was good learning experience and hope this helps anyone who is thinking about doing a HELOC or other home equity programs. Don't know the restrictions in other states.