A Texas homeowner wants to take out a home equity loan on their homestead. Under the Texas Constitution Article XVI §50(a)(6), what is the maximum combined loan-to-value ratio permitted for home equity loans on the homestead?
Correct Answer
C) 80% of the fair market value of the homestead
Under Texas Constitution Article XVI §50(a)(6)(B), a home equity loan on a Texas homestead may not exceed 80% of the fair market value of the homestead on the date the extension of credit is made. This includes all outstanding liens (including the home equity loan itself). This 80% LTV cap is a constitutional protection unique to Texas.
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- → A Texas homeowner defaults on a personal loan of $50,000. The creditor obtains a judgment and seeks to force the sale of the homeowner's primary residence to satisfy the debt. Under Texas homestead law, can the creditor force the sale?
- → A creditor attempts to place a lien against a Texas family's homestead for an unpaid medical bill of $25,000. Under Texas homestead law, can this lien attach to the homestead?
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- → Mark and Lisa are married and live in Texas. During their marriage, Mark purchases an investment property using earnings from his salary. Under the Texas Family Code, how is this property classified?
- → Before her marriage to David, Sarah owned a rental house in Austin. After the wedding, rental income from the property accumulates in a joint bank account. Under the Texas Family Code, how is the rental income classified?
- → Under the Texas Family Code, what is the legal presumption regarding property acquired during a marriage in Texas?
- → After 10 years of marriage, William inherits a lakehouse from his father. William's wife, Karen, assumes the inheritance is community property because they received it during their marriage. Under the Texas Family Code, who is correct?
- → Under the Texas Family Code, what is the legal term for a written agreement between spouses that converts community property into one spouse's separate property?
- → Under the Texas Family Code, what happens to community property when one spouse dies without a will in Texas?
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Previous Question
A Texas homeowner hires a contractor to build a $40,000 addition to their homestead. The homeowner refuses to pay the contractor. Under Texas law, can the contractor place a mechanic's lien on the homestead and force a sale?
Next Question
A single adult in Texas owns a 150-acre rural property where they reside. Under Texas homestead law, how much of this property is protected as a homestead?