Conventional financing from traditional lenders, like banks, has stricter underwriting guidelines than private money lenders like Pioneer Hard Money.
We can fund based on assets rather than personal finances. With this model, we can lend fast! Moreover, we provide private loans to investors and borrowers with bad credit, helping them when faced with the following:
When you need a hard money refinance, Pioneer Hard Money is here to help. Contact us today to learn more about your options!
A cash-out refinance loan is a blend of a traditional refinanced mortgage and an equity loan. Across the United States, homeowners use this method to withdraw equity from homes in cash.
When a homeowner refinances their mortgage, they receive cash for a percentage of the difference between the remaining value of a loan and the home’s current value. Under Texas law, homeowners can take out up to 80% of the home’s equity. Then, the new mortgage covers the balance of the previous and creates a new loan.
For real estate investors, this is an opportunity to leverage the value of a real estate project prior to its sale. It allows them to reinvest in a new project without missing an opportunity.
In addition to the convenience of fast cash for your existing equity, another significant benefit is getting a loan through cash-out refinancing with a private money lender. The remaining cash left over is not considered income because it is from your existing equity, which means it is TAX-FREE!
Then you can then use this TAX-FREE private money 100% for your investment or purchase!
No, Texas does not regulate cash-out refinancing for investment properties or second homes. Currently, the law applies solely to primary residences. If you are in the Greater Houston Area and in need of a hard money refinance loan, reach out to us today.
Homeowners can use this loan program in several different ways.
Yes, real estate investors can pull cash from an investment property with cash-out refinancing. Houston REIs use this tactic often to take advantage of different opportunities.
However, there are restrictions that apply in Texas. If it’s not your primary residence, there is a limit of 70% of the home’s value instead of 80%.
For example, if your property has a value of $200,000, you can borrow up to $140,000.
Before 2018, the state law did not encourage Texas cash-out refinance loans. However, lawmakers in the state eased regulations over time. Today, any homeowner is eligible for a Houston cash-out refinancing loan.
However, there are some cash-out refi rules to consider. Luckily, these rules apply solely to your primary residence. While some limitations apply, real estate investors can use a refi on an investment property.
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