Finance
The Texas Constitution Article XVI Section 50 limits home equity loans to a maximum loan-to-value ratio of:
A70% of the fair market value
B80% of the fair market value✓ Correct
C90% of the fair market value
D100% of the fair market value
Explanation
Texas Constitution Article XVI Section 50 restricts home equity loans so that the total debt secured by the homestead cannot exceed 80% of the fair market value of the property. This is one of the most consumer-protective home equity provisions in the nation.
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