Point fifty(a)(6)(H) away from Blog post XVI of the Tx Composition forbids a house collateral financing regarding getting covered by the any extra real otherwise individual assets apart from this new borrower’s homestead. Particularly property is known as prohibited more guarantee. Inside our memo, we treated how Texas’ prohibition towards the additional guarantee inhibits a single who isn’t a proprietor quick loans Post Falls or the mate regarding a proprietor away from signing the newest note on a house equity loan. Because intends to pay back because of the such as for instance low-citizens are considered sureties or guaranties, they are both noticed extra equity and you may prohibited not as much as Part fifty(a)(6)(H).

Within memo, i defense some other popular circumstances that raises the issue of banned additional equity toward a house equity loan: if or not property guarantee loan may personal having financing guaranty provided with brand new U.S. (suite…)