State-Specific Questions Mortgage Questions

Explore sample State-Specific Questions questions and educational explanations from the RatesQ team.

• What are the Texas cash-out refi rules? Heard they're different from other states

  I live in Texas and want to do a cash-out refinance. I've heard Texas has special rules around home equity. My home is worth $450k and my current mortgage is $280k. How much can I pull out and what are the Texas-specific restrictions?

  Texas is unique. Under Section 50(a)(6), you can only borrow up to 80% of your home's appraised value total, including the existing mortgage. So on $450k: 80% = $360k. Your current mortgage is $280k. Max cash-out would be $360k - $280k = $80k minus any fees rolled in. The 12-day waiting period is also real — you sign the application, then must wait 12 calendar days before you can close.

  All of that is correct. A few additional Texas-specific points: the loan must be made by a licensed lender, the borrower must receive a disclosure at least 3 business days before closing, and the right of rescission applies (3 days to cancel after closing). Also importantly — once you do a Texas 50(a)(6) cash-out, any future refinance on that property is treated as a home equity loan under Texas law, even if you're not taking any cash out. This matters for future refinancing strategy. Not a dealbreaker, but good to know going in.

• Florida condo financing — why are some condos harder to approve?

  I found a condo in Tampa I love but my lender said the building isn't 'warrantable.' What does that mean and is there any way to still get financing on it?

  Update: I asked my lender and the issue is that the building has more than 50% investor-owned units. Apparently that's one of the Fannie Mae disqualifiers.

  Yes, that's one of the most common reasons. Fannie and Freddie don't want to insure buildings where more than half the units are rentals because it changes the risk profile. Other common disqualifiers: active HOA litigation, less than 10% of dues in reserves, single entity owns 10%+ of units, the building is a hotel/resort hybrid, or it has incomplete construction. After Surfside, Florida buildings also face enhanced scrutiny on structural reserves.

  Non-warrantable doesn't mean unfinanceable. You have a few options: portfolio lenders (banks that keep the loan on their books and don't need GSE approval), non-QM lenders, or sometimes FHA (FHA has its own condo approval list but the building must apply). Rates will be higher — typically 0.5–1.5% above conventional — and down payment requirements may be stricter (20–30%+). The first step is getting the HOA's condo questionnaire and financials to understand exactly why it's non-warrantable. That determines which path makes sense.