Using home equity loan funds for REI in Texas

I know this has been addressed before on these forums…but can’t seem to find it in the search engine.

Some kind of law that restricts how much and/or timing of what can be pulled out of home equity for loans against it.

Anyone know the specifics on this…or can you repost the old hyperlink to the thread.


You mean like no more than 80% LTV (on primary residence)???

…as in pulling funds from a primary residence home equity loan…to finance an investment property purchase.


Well, you can do Cash Out Refinance or HALOC. Once you have the cash, you can do what you like with it. There is no law against that. They will not however give you more than 80% of appraised value (you pay for appraisal) so you get 0.8 * ARV - Loan Balance.

I found it easier to just get a regular line of credit. It has higher interest, but higher line of credit and no upfront fees.