I need to know if Texas state law prohibits the consolidating and refinancing a first & second mortgage. I am currently trying to consolidate and refinance the 2 loans (which are both with the same bank) but am being denied because I used the second mortgage loan for home improvement and not to purchase the home? Can anyone help clarify this for me? Thanks!

It is to my understanding that Texas State Law only allows to a Texas cash out up to 80 LTV and once a cash out...always a cash out. With this in mind,
you already have a cash out 2nd.. Which means you are limited to a max financing of 80% total CLTV.

Best of luck to you.