A Texas homeowner wants to add an addition to the home. The contractor's total bid is $85,000. Which of the following must be completed BEFORE work begins for the contractor to have a valid mechanic's lien on the homestead?
Correct Answer
D) A written contract must be signed by the homeowner and the homeowner's spouse, if married
Under Texas Constitution Article XVI, Section 50(a)(5) and Texas Property Code §53.254, a mechanic's lien on a homestead requires a prior written contract signed by both spouses (if married) before work begins. This is a constitutional requirement for homestead protection.
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The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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In Texas, where must the closing of a home equity loan on a homestead take place?
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A married couple in Texas wants to take a home equity loan. Their homestead is valued at $450,000 and they owe $310,000 on their first mortgage. The lender charges 2 points on the home equity loan. What is the maximum amount of points the couple will pay?