Under Texas homestead law, which of the following is NOT a requirement for a valid home equity loan on a Texas homestead?
Correct Answer
B) The borrower must provide a personal financial statement showing a minimum net worth of $50,000
There is no requirement under the Texas Constitution that a home equity loan borrower demonstrate a minimum net worth of $50,000 or any other amount. The Texas Constitution imposes many requirements on home equity lending (closing location, LTV limits, cooling-off period, etc.), but a minimum net worth requirement is not among them.
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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?
- → A Texas homeowner converts their homestead into a rental property and moves to another state. After two years, a creditor seeks to foreclose on the former homestead for an unpaid business debt. Under Texas law, can the creditor force the sale?
- → 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?
- → A Texas couple gets married. The wife owns a car free and clear that she purchased three years before the wedding. Under the Texas Family Code, what is the classification of this car?
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Previous Question
A Texas homeowner entered into a home equity loan in 2020. In 2025, the homeowner discovers the lender failed to comply with one of the constitutional requirements for home equity loans under Article XVI §50(a)(6). Under Texas law, what is the homeowner's remedy?
Next Question
A Texas homeowner who lives on a 15-acre property in a rural area outside San Antonio has a family of four. Under Texas homestead law, is the entire 15-acre property protected as a homestead?