Yes—Texas Homeowners Can Access Their Home Equity
Texas allows HELOCs, home-equity loans, and cash-out refinancing. The process is different because state law includes added safeguards. We'll help you understand the rules, estimate what may be available, and compare the paths side by side.
Educational estimates only. No obligation to proceed.
Myth
"Texas doesn't allow home-equity loans."
Fact
Texas allows them, including HELOCs, but protects homeowners with stricter limits and closing steps.
Options You Can Compare
Three common ways Texas homeowners access equity — compared side by side using the details you provide.
Texas HELOC
Explore a reusable line of credit that may provide flexibility for home improvements, debt consolidation, or other financial goals.
Home-Equity Loan
Compare a fixed loan amount and predictable payment structure using available home equity.
Cash-Out Refinance
See how replacing an existing mortgage while accessing equity compares with other options.
Illustrative comparison only — not a quote, rate offer, or approval. Actual terms depend on your credit, equity, and a full underwriting review.
The Texas Rules—in Plain English
Texas permits home-equity lending under Article XVI, Section 50(a)(6) of the Texas Constitution, with added consumer safeguards. Here's a plain-language summary of the key rules.
80% Combined Loan-to-Value
Your existing mortgage(s) plus the new home-equity debt generally cannot exceed 80% of the home's fair market value.
One Equity Loan at a Time
Texas generally allows only one home-equity loan secured by your homestead at a time.
One-Year Spacing
A new Section 50(a)(6) loan generally cannot close until at least one year after the prior one on the same home, subject to narrow legal exceptions.
12-Day Waiting Period
At least a 12-calendar-day waiting period begins after the later of the loan application or the required disclosure.
Authorized Closing Location
Closing occurs at an authorized lender, title company, or attorney office — not remotely or informally.
3-Day Right to Rescind
Owners receive a three-day right to rescind after closing, providing time to reconsider the transaction.
Educational summary only, not legal advice or a loan approval. Eligibility and timelines depend on your property, existing liens, underwriting, and current law. For details that apply to your situation, request a personalized review with a licensed loan officer.
How We Get It Done
A clear path from estimate to closing — designed around Texas requirements.
Estimate Available Equity
We start with your home value and all mortgage balances to estimate how much equity may be available.
Confirm the Homestead
We confirm Texas homestead status, ownership, existing liens, and any prior home-equity loan history.
Compare Your Options
Side-by-side comparison of a Texas HELOC, fixed home-equity loan, and cash-out refinance.
Submit & Start the Clock
You submit the application and receive the Texas disclosure, which starts the required 12-day waiting period.
Underwriting Review
We complete appraisal and title, plus income, credit, and full underwriting review.
Close & Disburse
You close at an authorized location; after the rescission period, eligible funds are disbursed.
What to Have Ready
Get Your Texas Comparison
Enter your details to generate your side-by-side comparison and save a private link to your report.
Frequently Asked Questions
Straight answers about how the Texas comparison works.
Is this a loan offer or a rate quote?+
No. Mortgage Compass Pro provides educational estimates to help you compare potential home-equity options side by side. Any actual rate, term, or approval requires a personalized review and is subject to credit approval and underwriting.
Does comparing options affect my credit score?+
The comparison itself uses the details you enter to estimate potential options. It is not a loan application and does not pull your credit. A credit review only happens if you choose to request a personalized review or start a full application.
Do I have to provide my Social Security number to compare?+
No. You can generate an educational comparison without providing a Social Security number. A SSN is only collected later if you choose to proceed with a full loan application.
What happens after I see my comparison?+
You can request a personalized review with a licensed loan officer, continue to a full loan application, or schedule a conversation — all optional. There is no obligation to proceed.
Can I get a HELOC in Texas?+
Yes. Texas permits home-equity lines of credit (HELOCs) under Article XVI, Section 50(a)(6) of the Texas Constitution. They are subject to state-specific safeguards, including limits on how much you can borrow and required waiting periods before closing. Your eligibility depends on your property, equity, credit, and a full underwriting review.
How much equity can I access?+
Under Texas law, the combined total of your existing mortgage(s) and any new home-equity debt generally cannot exceed 80% of your home's fair market value. The amount you may personally access depends on your current balances, home value, credit, and underwriting — not just the 80% ceiling.
Why is there a 12-day waiting period?+
Texas law requires a waiting period — at least 12 calendar days — between your loan application (or the delivery of required disclosures, whichever is later) and closing. This gives homeowners time to review the terms and consult advisors. The exact timeline can depend on when disclosures are provided and other legal requirements.
What if I already have a Texas home-equity loan?+
Texas generally allows only one home-equity loan secured by your homestead at a time, and a new Section 50(a)(6) loan typically cannot close until at least one year after a prior one. There are narrow legal exceptions, so your specific situation should be reviewed with a licensed loan officer before proceeding.
Mortgage Compass Pro is provided by SHIELD HOME LOANS INC. Educational estimates only — not a commitment to lend, a rate lock, or an approval. All loans subject to credit approval and underwriting. See full disclosures and our Privacy Policy, Terms, and SMS Consent below.
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