A Texas home equity loan has an 80 percent loan to value (LTV) limit. Even if a Texan has a home worth $100,000 and $100,000 in equity, the most he could possibly borrow against it would be $80,000. However, the majority of people will not get the maximum loan. Many Texas services will, however, grant a person in this situation who also has good credit and a solid financial history a loan of at least $30,000.
Beware of Quick Foreclosure Proceedings in the Loan Star State
When a person receives a home equity loan, he puts up his house as collateral. No matter where a person lives, he will have problems if he falls behind in payments, because foreclosure is always a risk. However, a person who falls behind on equity loans in Texas has much less time to catch up on payments than those in most other states, because in Texas, a house can be scheduled for a foreclosure sale in as little as three weeks.
Reasons to Get a Texas Home Equity Loan
Usually, people apply for home equity loans when they know the money received will be able to take care of several financial problems in a short time. Larger home equity loans can be used to pay off school or car loans. They can also be used as a down payment on a second property or as a refinancing tool. There’s one more very common reason why some people take out home equity loans–home improvement. Turning the equity on your home into further investment capital can have great rewards, if conducted wisely. As Texas home values continue to rise, more and more homeowners have been doing upgrades to speed the process along for their own homes. There are a number of online services that provide home equity loan services. However, most of these services deal with people from all over the country. Someone in Texas should work directly with a company that specializes in Texas home equity loans, because laws and approval requirements are different in each state.
Where can I get a Home Equity Loan in Texas?