Let's say I own a house, Property 1, no mortgage or liens of any kind, I have great credit, etc. I can't do the obvious thing and sell Property 1 because reasons, but I need to get some cash to buy Property 2. The property I want to buy, Property 2, is a cash-only property, not eligible for conventional home financing for some reason.

Could I get a loan secured by Property 1 and use the proceeds to buy Property 2? Is that a standard financing situation? Assuming I have no other debt, what's the maximum percentage of value I could pull out of/finance based on Property 1? Had I bought Property 1 new, I could have kept all my cash and bought it for 10% down, so could I now finance 90% of its value and use that cash to buy Property 2? What kind of loan is this? It's not a HEL where I'd be using Property 1 as collateral to add onto or improve Property 1....what is it? Hopefully someone can get me started on thinking about this.

Cash-Out Refinance. Max LTV is 80%.

Just a simple cash out refi. If it is your owner occupied property in Texas the max is 80% loan to value per state law. If it is a non-owner occupied single family you can go up to 75% loan to value for the best priced conventional rate but as high as a lender will go up to as there is no law dictating what you can take out.

Thanks a lot, guys. Great info. What are typical fees for this? Flat or percentage? Similar to closing costs I would imagine...origination, appraisal, lawyer, recording?

Typical closing costs, but a little higher then a non cash out refi if it is your primary residence because the title policy is more expensive. This premium is set by the state so it will be the same no matter who your lender or title company is.