Texas law: VA refi and heloc at the same time?

Question

As the title says, can I do a straight, no cash, VA refi and heloc at the same time. I've read everything I could find including the new amendments but this hasn't been addressed as far as I can tell.

Primary sfr in dfw, $250k value, $170k loan

I want to refi to a 1st of $150k and $50k heloc 2nd with initial draw of $20k.  This would help clear a few hurdles for me, now and in the future. Is this at least legally sound? -only one equity line per year with cltv at 80%. Am I missing anything?

Thanks,

Andrew Postell · Answer

@DJ Langehennig what you described you CANNOT do here in Texas.  You COULD do a $30k HELOC.  But you cannot refinance in the manor that you described.  If you wanted to keep your current VA loan (which probably has a pretty good rate) and get a $30k HELOC with a $20k draw that would be the best (and only) method of doing something close to what you described.  Feel free to tag me if you have more questions.

Thanks for the mention @Chris Mason

Chris Mason · Answer

FYI: Texas has wonky state-specific rules regarding cash out refinances that are alien to anyone not in Texas, including myself. Probably needs a Texas-specific answer to this one.

@Andrew Postell?

Kerry Baird · Answer

Welcome!

Your question is confusing.  Legally, all is fine.  You have some equity, and you are looking to refinance.  The VA IRRRL is a great program.  The HELOC is fine. What you are missing in your question is direction.

We are here to discuss real estate investing.  What is your intention with this transaction? I wonder if you’ve defined what your goals are.  How does this help you meet your goals?  How does your position improve? Are you looking to use those funds to buy another investment property or two?  Post a bit more, even if only for your own clarification.