What Texas Homeowners Should Know About HELOCs
If you own a home in Texas and have built up equity, you may have options for accessing some of that equity without selling your home.
One option may be a Home Equity Line of Credit, or HELOC.
A HELOC allows qualified homeowners to borrow against available equity in their home. Unlike a traditional loan that provides one lump sum, a HELOC generally provides a line of credit that can be accessed as needed, subject to the terms of the loan.
What Can a HELOC Be Used For?
Homeowners may consider using home equity for a variety of needs, including:
Home improvements or repairs
Debt consolidation
Major unexpected expenses
Education expenses
Other eligible financial needs
Of course, using your home's equity is a significant financial decision. Your home serves as collateral, and qualification requirements apply.
HELOCs in Texas Are Different
Texas has specific laws governing home equity lending, so getting a HELOC here can be different from getting one in another state.
Among other requirements, Texas generally limits the total amount of debt secured by a homestead to 80% of the home's value. Your existing mortgage balance and other applicable liens are taken into consideration when determining how much equity may be available.
There are also specific requirements regarding eligibility, disclosures, timing, and closing.
That may sound complicated — but that's where I can help.
How Much Could You Qualify For?
The amount you may be able to access depends on several factors, including your home's value, current mortgage balance, available equity, credit, income, and lender requirements.
For the HELOC program currently available through my lending partners, loan amounts may range from $5,000 to $1,000,000, with a minimum credit score of 620, subject to eligibility and lender guidelines.
Not sure where you stand? We can take a look at your situation and determine what options may be available to you.
Is a HELOC Right for You?
A HELOC isn't the right solution for every homeowner.
Depending on your goals and financial situation, another home equity product or refinancing option may make more sense. That's why I believe in looking at the bigger picture instead of simply putting everyone into the same loan program.
My policy is caring — and that starts with helping you understand your options.
If you're a Texas homeowner wondering whether you can put your home's equity to work, let's talk.
Ready to explore your options?
Credit, income, property, equity, and other eligibility requirements apply. Loan programs, terms, rates, and availability are subject to lender guidelines and may change. This information is provided for general educational purposes and is not a commitment to lend.
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