First Time Home Buyer’s Guide
First Time Home Buyer's Guide
There are 3 main functions of the Homestead exemption laws in taxes:
- They prevent the forced sale of a home to meet the demand of creditors.
- They provide the surviving spouse with shelter
- They provide an exemption of property taxes which can be applied to a home.
Briefly, the “residential homestead” refers to the lot or parcel of land upon which the residence of the family or single adult person is located and anything which is a part of that land and is subject to the homestead exemption laws of the State of Texas. Those laws primarily provide the security of a family’s home, shelter, and earning of a livelihood free from the claims of all creditors, save and except the holders of purchase money liens, liens for improvements and taxes.
Therefore, the only loans that can be valid and insurable on your home are loans from the following:
- The loan for the amount of the purchase price of the home (but not more than that.)
- Payment of real property taxes on the home.
- Additions to or improvements of the real property evidenced by a contract for those improvements signed by the owners and the contractor.
- Recently, a loan to receive your “equity” from your home appreciation under some strict rules.
- Recently, a “reverse mortgage” for senior citizens (over 62) which allows them to receive much of their equity without any type of repayment until the property is sold or their death.
Any other type of lien (i.e., judgement) cannot result in the taking of the homestead by foreclosure.
To Fill out an application for your Texas Homestead Exemption please CLICK HERE
If you would like to speak to a REALTOR please visit our ASK A REALTOR page.
You can also contact a REALTOR directly by calling Hunter Webb at (469)-951-2299 or at HunterWebb@verizon.net
