Question 1

Does Texas homestead law block a second mortgage on my Waxahachie rental?

Accepted Answer

No, if the rental is not your homestead. Article XVI, section 50 of the Texas Constitution permits liens on a homestead only for a closed list of debts, and the home equity rules on that list (consent of each owner and spouse, total homestead debt capped at 80% of value, a 2% fee cap with exclusions, foreclosure only by court order) protect the homestead. A rental you do not live in falls outside them, and a second lien on it is an ordinary deed-of-trust lien. Homestead turns on use and intent, and title companies can treat a borrower's only Texas residential property as homestead by default, so expect occupancy to be checked, not assumed. This is not legal advice; your attorney or title company has the final say. Terms are on the second mortgage program page, and the Texas investment property second mortgage guide goes deeper.

Question 2

What does it cost to record a second lien in Ellis County?

Accepted Answer

$25 for the first page and $4 for each added page. The Ellis County Clerk's schedule, effective January 1, 2024, adds $0.25 for each name beyond five, so a 6-page deed of trust would record for $45 ($25 + 5 x $4), an illustration, not a quote for your documents. That schedule reflects Senate Bill 1612, which repealed a $1 document filing fee from the same date. The Recording Division accepts electronic filing through its approved vendors, including Simplifile, and the counter is at 109 S. Jackson St., 2nd Floor, in Waxahachie; every document needs a return address. Cedar Hill, Mansfield and Glenn Heights each spill into Ellis County, so confirm which clerk a parcel records with. County fees are not USAM terms.

Question 3

What happens to a second lien on a Waxahachie rental if the first is foreclosed?

Accepted Answer

A first-lien sale can wipe out the second. A Texas deed of trust can be foreclosed outside court under Property Code section 51.002: sales run between 10 a.m. and 4 p.m. on the first Tuesday of the month, at the courthouse or an area the commissioners court designates, after at least 21 days of notice filed with the county clerk. The Texas Supreme Court has held that foreclosure of a senior lien extinguishes inferior liens, so a second only holds its value while the first stays current, which is why combined loan-to-value counts every lien. See lien position explained before you stack debt.

Question 4

What does Waxahachie require of a short-term rental I want to borrow against?

Accepted Answer

A Specific Use Permit in most of the city, plus annual registration. Under Ordinance 3414 (October 2023), a short-term rental needs a Specific Use Permit in every zoning district except the Central Area district, where registration alone is required. The city lists the permit at $500 and registration at $300 a year, and every registered rental is fully inspected each year and must display its registration placard. The permit application needs proof of insurance of at least $1,000,000 per occurrence and the latest hotel occupancy tax receipt, and the owner sends written notice to adjoining owners each year. Short-term rentals are eligible for our second mortgage; confirm the permit status, and who can hold it if the property sits in an LLC, with the city before you count on nightly income. This covers Waxahachie only; check with other Ellis County cities directly.

Question 5

Is a second mortgage on a Waxahachie rental a consumer loan under Texas law?

Accepted Answer

Texas decides that by purpose. Finance Code chapter 342, the secondary mortgage loan chapter, covers a loan only if, among other conditions, it is extended primarily for personal, family or household use, and the residential mortgage licensing chapters use the same test. We found no Texas regulator guidance on business-purpose seconds specifically, so this describes the statutes and is not a licensing opinion. Talk to your attorney about your own structure.

Question 6

What local costs should I check on a Waxahachie rental before adding a second payment?

Accepted Answer

The full tax stack and any historic overlay. A rental gets no homestead exemption or 10% appraisal cap; the combined rate inside Waxahachie is about $2.05 per $100 of value (2.0521: county, lateral road, city and Waxahachie ISD), against about $2.17 in Ennis and $1.71 in Maypearl, from the Ellis County tax office's 2025 rates. If the rental sits in the Downtown or Oldham Avenue historic overlay, a Certificate of Appropriateness is needed before a permit issues, so build that step into any renovation plan. Run the payment side with the second mortgage calculator, and talk to your CPA about your own figures.

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