Finance
Under the Texas Home Equity law, a homeowner may borrow against their home equity provided the total debt against the homestead does not exceed:
A50% of the market value
B75% of the market value
C80% of the market value✓ Correct
D90% of the market value
Explanation
Texas Home Equity lending has strict constitutional protections. The combined loan-to-value ratio (all mortgages + home equity loan) cannot exceed 80% of the fair market value of the homestead.
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