Expert: Dottie Worthington - 8/5/2005

Question
I am the executor of my fathers estate. Does Texas allow a person to use an existing home
as "collateral" towards the purchase of a home.
I would like to use his old home(still in his name) as the "collateral" for a townhouse purchase for myself.

Answer
Check with your attorney, I don't know what state you are in, but the house in Texas you could use to borrow against if it is in your name.  You may be better off to sell it and use it in a 1031 exchange to invest into the townhouse. That may save you a lot on taxes.