What is a Texas 50(a)(6) loan?

A Texas 50(a)(6) loan is a cash-out refinance that allows homeowners to access the equity in their primary residence. It is governed by Article XVI, Section 50(a)(6) of the Texas Constitution and includes specific restrictions like an 80% loan-to-value cap and a mandatory 12-day disclosure period.

What can I use the funds from a 50(a)(6) loan for?

You can use the funds for virtually any purpose, including home renovations, debt consolidation, education expenses, or emergency funds. However, the loan must meet strict state guidelines.

Who qualifies for a 50(a)(6) cash-out refinance?

To qualify, you must own and live in the home as your primary residence, have enough equity, and meet credit and income requirements. Second homes and investment properties do not qualify under 50(a)(6) rules.

What is a Texas 50(f)(2) refinance loan?

A Texas 50(f)(2) loan is a refinance of a previous 50(a)(6) loan where no additional cash is taken out. This type of refinance allows borrowers to potentially secure a lower interest rate or better terms.

How long must I wait to refinance a 50(a)(6) loan into a 50(f)(2)?

You must wait at least 12 months after closing on a 50(a)(6) loan before you can refinance it as a 50(f)(2) loan. No equity can be withdrawn in the process.

Are FHA and VA loans eligible for Texas 50(a)(6)?

No. FHA mortgage Texas and VA loans Texas broker programs do not allow for 50(a)(6) cash-out refinances. However, you can use them for a 50(f)(2) refinance if you’re not taking out additional equity.

What are the main differences between 50(a)(6) and 50(f)(2)?

• 50(a)(6): Cash-out refinance using home equity • 50(f)(2): Rate-and-term refinance of an existing 50(a)(6) loan without cash-out. The main difference lies in whether or not you're withdrawing equity.

Are there any closing costs or restrictions I should know about?

Yes. Texas limits fees and closing costs on 50(a)(6) loans to 2% of the loan amount (excluding certain exceptions). The state also imposes strict disclosures and waiting periods.

How can Bonelli Financial Group help with these loans?

As a trusted Texas mortgage broker, Bonelli Financial Group provides tailored guidance, helps you compare offers from top mortgage lenders Texas homeowners trust, and ensures full compliance with Texas laws. Whether you’re doing a 50(a)(6), 50(f)(2), FHA, or VA loan, we simplify the process and advocate for your financial goals.

Texas Cash-Out Refinance: 50(a)(6) vs 50(f)(2) Explained

If you're applying for an FHA mortgage in Texas or consulting a VA loans Texas broker, be aware that FHA and VA loans are not eligible for Texas 50(a)(6) cash-out refinances. These government-backed programs do not permit home equity withdrawals under this constitutional provision.

However, you can refinance an existing 50(a)(6) loan into an FHA or VA loan using a Texas 50(f)(2) refinance, provided no additional cash is taken out. This is a practical option for veterans and first-time homebuyers aiming to reduce their rate after a previous equity loan.

If you are unsure whether your current mortgage qualifies, speak with an experienced VA loans Texas broker or FHA lending advisor to explore your eligibility.

Whether you are considering a 50(a)(6) cash-out or a 50(f)(2) refinance, navigating the loan landscape in Texas requires a clear understanding of state-specific rules. The professionals at Bonelli Financial Group are here to provide insight and support at every stage.

Personalized loan guidance
Access to top mortgage lenders in Texas
Comprehensive knowledge of equity lending and refinance laws

Call Bonelli Financial Group at 1-800-BONELLI or click here to contact us to schedule a free consultation.

The right mortgage broker in Texas can help you avoid delays, save on interest, and select the most suitable loan structure. At Bonelli Financial Group, we assist borrowers in understanding and executing 50(a)(6) and 50(f)(2) loans with full transparency.

Why We’re Considered One of the Best Mortgage Broker in Texas:

Deep experience in residential lending and equity-based refinance
Knowledge of Texas-specific mortgage restrictions
Access to a network of top mortgage lenders Texas borrowers trust

What is a Texas 50(a)(6) loan?
A Texas 50(a)(6) loan is a cash-out refinance that allows homeowners to access the equity in their primary residence. It is governed by Article XVI, Section 50(a)(6) of the Texas Constitution and includes specific restrictions like an 80% loan-to-value cap and a mandatory 12-day disclosure period.
What can I use the funds from a 50(a)(6) loan for?
You can use the funds for virtually any purpose, including home renovations, debt consolidation, education expenses, or emergency funds. However, the loan must meet strict state guidelines.
Who qualifies for a 50(a)(6) cash-out refinance?
To qualify, you must own and live in the home as your primary residence, have enough equity, and meet credit and income requirements. Second homes and investment properties do not qualify under 50(a)(6) rules.
What is a Texas 50(f)(2) refinance loan?
A Texas 50(f)(2) loan is a refinance of a previous 50(a)(6) loan where no additional cash is taken out. This type of refinance allows borrowers to potentially secure a lower interest rate or better terms.
How long must I wait to refinance a 50(a)(6) loan into a 50(f)(2)?
You must wait at least 12 months after closing on a 50(a)(6) loan before you can refinance it as a 50(f)(2) loan. No equity can be withdrawn in the process.
Are FHA and VA loans eligible for Texas 50(a)(6)?
No. FHA mortgage Texas and VA loans Texas broker programs do not allow for 50(a)(6) cash-out refinances. However, you can use them for a 50(f)(2) refinance if you’re not taking out additional equity.
What are the main differences between 50(a)(6) and 50(f)(2)?
• 50(a)(6): Cash-out refinance using home equity
• 50(f)(2): Rate-and-term refinance of an existing 50(a)(6) loan without cash-out. The main difference lies in whether or not you're withdrawing equity.
Are there any closing costs or restrictions I should know about?
Yes. Texas limits fees and closing costs on 50(a)(6) loans to 2% of the loan amount (excluding certain exceptions). The state also imposes strict disclosures and waiting periods.
How can Bonelli Financial Group help with these loans?
As a trusted Texas mortgage broker, Bonelli Financial Group provides tailored guidance, helps you compare offers from top mortgage lenders Texas homeowners trust, and ensures full compliance with Texas laws. Whether you’re doing a 50(a)(6), 50(f)(2), FHA, or VA loan, we simplify the process and advocate for your financial goals.

Texas home loans that fall under sections 50(a)(6) and 50(f)(2) require careful planning. By understanding the structure and limits of each loan type, you can make informed decisions and protect your home’s equity.

If you are ready to refinance or are considering a home equity loan, working with an experienced Texas mortgage broker can save time, reduce costs, and ensure compliance with state law.

If you are ready to move forward, Bonelli Financial Group is here to help. We provide straightforward advice, access to competitive rates, and hands-on support from application to closing.

Contact us now to schedule a personalized loan review.

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