Finance
Texas home equity loans are governed by strict constitutional limits. The total debt secured against a Texas homestead cannot exceed:
A50% of the fair market value
B75% of the fair market value
C80% of the fair market value✓ Correct
D100% of the fair market value
Explanation
Texas Constitution Article XVI § 50 limits total debt on a homestead to 80% of the fair market value. Home equity loans in Texas are also limited to one per year and subject to significant consumer protections.
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