Consumption and Real Estate
General warranty deed state of Texas home exemption question?
Question : General warranty deed state of Texas home exemption question?
My parents co signed on the loan for my home. Since they did this, I cannot claim 100% homestead exemption in the state of Texas. If my parents sign themselves off of the Warranty deed, can I claim 100% Homestead exemption?
Can my parents even take themselves off the deed without changing their status on the mortgage?
Thank you very much!
I don’t want them off of my mortgage, just off of the warranty deed therefore allowing me to claim 100% Homestead exemption. I have good credit but I work for myself and a lot of my income is not shown therefore I cannot legally claim it to my mortgage broker. So.. I need my parents on the mortgage. I have never missed a payment on anything.
home warranty texas
Best answer:
Answer by hollywoodmelody
Be careful if you want to keep your home. Although you can not claim 100% homestead exemption, don’t be too quick in getting your parents off the deed and mortgage, You would have to be qualified for a loan yourself and have them quitclaim off the warranty deed. If you can not qualify yourself for a loan, then you might lose it to foreclosure if you cannot make the payments.
I would suggest keeping the warranty deed and mortgage the way it is until the real estate markets settle in. That way you don’t lose your house, your parents don’t mess up their credit and you can take a homestead exemption when you can legally take one.
If having your parents on the note and deed is so important then forget the homestead. Texas homestead is only 15% tax break anyway. I think you have got some bad information anyway about Texas homestead laws. If you are in the first position on the deed then your mom and dad dont have squat to do with you getting homestead credit. Now if they own a home in Texas and claim homestead on it, that might be something but I really think you have got some incorrect info from someone. Contact your county tax appraisal office and talk to them. And as far as you refi the house without them, people like yourself do it everyday. It is called either a stated income, or no-income loan. It is designed for self employeed people who make good money but really cant prove it. I myself have such a loan on my home in Parker County Texas. Rates will run alittle higher but not to bad. Mine is at 6.75%