Texas HELOC overview
Home values across Texas rose significantly in recent years, and many homeowners hold low-rate first mortgages they don't want to give up. A HELOC lets you use part of that equity while your first mortgage stays in place. But Texas regulates home equity lending on a homestead (your primary residence) through Section 50 of Article XVI of the Texas Constitution — so a Texas HELOC works a little differently than in other states.
| Program feature | Details |
|---|---|
| Initial credit check | Soft-pull Experian FICO 9 — no score impact |
| Maximum line | Up to $750,000, subject to CLTV, with Texas homesteads capped at 80% CLTV |
| Minimum FICO | 600 primary & second home · 680 investment |
| Valuation | No full appraisal generally required for lines ≤ $400,000 |
| Your loan originator | Matthew Brown, NMLS #1254520 |
Where Texas homeowners use HELOCs
Austin
Rapid appreciation in recent years left many Central Texas owners with equity to use for renovations and reserves.
Dallas–Fort Worth
Large suburban markets where homeowners often fund additions, pools, and outdoor living.
Houston
Owners use HELOCs for repairs, storm-hardening, and consolidating higher-rate debt.
San Antonio
A growing market where HELOCs help fund updates while keeping low first-mortgage rates.
Texas home equity rules you should know
These rules apply to home equity loans and lines secured by your Texas homestead:
| Rule | What it means |
|---|---|
| 80% CLTV cap | All debt secured by your homestead — first mortgage plus the HELOC — can't exceed 80% of the home's fair market value. |
| 12-day waiting period | You can't close until at least 12 days after you apply and receive the required Texas home equity notice. |
| 2% fee cap | Lender fees are capped at 2% of the loan amount. Third-party appraisal, survey, and title insurance costs are excluded from the cap. |
| Closing location | Closing must take place at the office of a lender, an attorney, or a title company — not at your home. |
| 3-day right to cancel | You can cancel within 3 business days after closing without penalty. |
| One at a time, once a year | Only one home equity loan can be secured by your homestead at a time, and at least 12 months must pass between home equity closings on the same property. |
| $4,000 minimum draw | Each advance on a Texas home equity line must be at least $4,000. |
| No card access | A Texas home equity line can't be accessed with a credit card, debit card, or unrequested preprinted checks. |
| Fees at opening | Fees to originate or maintain the line may be charged only when the line is established. |
What the 80% cap means in practice: on a $450,000 Texas home with a $250,000 mortgage, total homestead debt can't exceed $360,000 — so the most you could borrow is about $110,000. Try the HELOC calculator with the 80% setting.
These rules apply to your homestead. Second homes and investment properties in Texas aren't covered by the homestead home equity rules and may have different program limits.
What the Texas timeline looks like
- Check eligibility onlineSoft-pull review — no effect on your credit score.
- Receive your Texas home equity noticeThe 12-day clock starts once you've applied and received the required notice.
- Valuation and titleLines of $400,000 or less generally don't need a full appraisal.
- Close at an approved locationA title company, attorney's office, or lender's office.
- Wait out the rescission periodFunds become available after the 3-business-day right to cancel.
Work with a licensed Texas loan originator
Matthew Brown is licensed in Texas and works directly with Texas homeowners from eligibility check to closing. Call (512) 952-1125.