Investment Property Cash Out Refinance FAQ’s
How much equity do I need to get a Cash Out Loan for my Investment Property?
A borrower can take equity out of an investment property using conventional financing (lowest rates) as long as they leave 25% equity in their home when they obtain a Cash Out Loan. By way of example, if you have 50% equity in your home you can borrow 25% of the equity but must leave 25% equity in your home. This is a unique law in Texas and is intended to protect home owners from taking out too much equity from their home.
Taking out 75% of my equity is good but I need to take out more. Can I take out more than 25% of the equity in my rental property?
Yes, we offer an investor loan where you can take out 80% of the equity in your home but this program has a slightly higher rates (currently starting in the 5’s and 6’s).
Do the Texas Constitution Cash Out Home Equity Rules apply to Investment Property?
No, the Texas Constitution only regulates cash out home equity loans on your primary residence. These rules do not apply to 2nd homes or investment property.
How often can I take cash out of my investment property?
You can obtain a Cash Out Home Equity Loan for your investment property at any time. The Texas Constitution Home Equity laws do not place any restrictions on loans on investment property so the rule that says that you can only get a Texas Cash Out Home Equity Loan one time per year does not apply.