Current HELOC guidelines, updated from one source.
Read these as program parameters, not an offer: the combined loan-to-value ceiling as Texas law caps it, the credit score to start, the line sizes, and the draw and repayment periods on a primary residence, all from one guideline source that this page refreshes from.
Of the home’s value, first mortgage included
The ceiling counts every lien together: the first mortgage balance plus the new line, divided by the home’s value, may reach 80% on a primary residence at a 640 profile, with lower ceilings at lower tiers.
Credit score to start
A 600 score opens the program on a primary residence; the leverage ceiling and the maximum line step up through the tiers from there, some tiers sharing a cell, and second homes and rentals carry higher floors.
Automated valuation on lines to $500,000
The program writes lines from $25,000 to $750,000; up to $500,000 the valuation is ordinarily automated, and the largest lines, above that threshold, require a full appraisal on a primary residence.
Interest-only, then 17–25 years of repayment
3–5 years to draw, 17–25 years to repay: the two wholesale programs behind the table trade leverage for runway, and the file lands on whichever offers the stronger cell at the credit tier.
| Credit profile | Max combined LTV | Max line | Valuation |
|---|---|---|---|
| 720+ | 80% | $500,000 | Automated valuation · Texas homestead ceiling |
| 720+ | 75% | $750,000 | Full appraisal; primary residence only |
| 700+ | 80% | $500,000 | Automated valuation · Texas homestead ceiling |
| 700+ | 75% | $750,000 | Full appraisal; primary residence only |
| 680+ | 80% | $500,000 | Automated valuation · Texas homestead ceiling |
| 660+ | 80% | $500,000 | Automated valuation · Texas homestead ceiling |
| 640+ | 80% | $500,000 | Automated valuation · Texas homestead ceiling |
| 620+ | 70% | $400,000 | Automated valuation · Texas homestead ceiling |
| 600+ | 60% | $400,000 | Automated valuation · Texas homestead ceiling |
The 80% combined loan-to-value ceiling requires a 640 credit profile; lower tiers carry lower ceilings or smaller line caps, as the table shows. Second homes start at a 640 profile; investment property requires 700 and caps at 70% combined loan-to-value. Lines above the automated-valuation range: $750,000 at 75% with a full appraisal (700+ credit profile).
Current HELOC snapshot · updated August 31, 2026 · seven credit tiers on a primary residence · variable rate through the draw and repayment periods · at least 75% of the line drawn at closing · first or second lien position · no prepayment penalty · no entity vesting.
Texas homestead rules: a primary residence caps at the ceiling shown, only one Texas home-equity lien may be open at a time, a waiting period applies between the initial disclosures and closing, and the property is limited to ten acres. Second homes and investment property follow the standard tables.
This page describes program parameters, not an offer. Ceilings, caps, floors, and periods are wholesale lender guidelines, subject to change without notice and to full underwriting; the valuation, the credit report, the occupancy, the property, and the state rules decide every file. No rate, payment, or cost is stated here; a licensed Lendmire loan officer provides them in writing. Lendmire is a mortgage broker, never the lender, licensed for consumer home equity lending in sixteen states. Lendmire, LLC, NMLS #2371349. Equal Housing Opportunity.
What a home equity line of credit is — and how the line is sized.
A HELOC on a Texas home is sized the way a line of credit is, not the way a mortgage is: by the equity that is actually there, the tier the credit profile lands in, and the occupancy. The cards below cover the line itself, the equity math, the tier ladder, and how the file closes.
For the program overview, see Lendmire’s home equity line of credit program; for rentals held by an investor, see the investment property HELOC.
A line you draw on, not a lump sum
Think of it as a credit limit secured by the house. During the draw period you borrow and repay as you like, paying interest only on what is out; once the draw period ends, the balance converts to a fully amortizing repayment schedule.
Equity and the combined loan-to-value ceiling
Every lien counts toward the ceiling. The first mortgage, any existing second, and the new line are added together and divided by the Texas home’s value; the result must sit under the ceiling for the credit tier, and the line is sized to fit exactly there.
Your credit tier sets the ceiling and the cap
The program is a ladder: the higher the credit profile, the higher the combined loan-to-value ceiling and the larger the maximum line. A Texas owner at the top tier reaches the full ceiling; the tiers below it carry smaller ceilings or smaller caps, down to the floor.
Valuation, verification, and closing
Valuation and verification come first, an automated valuation on most lines and electronic income checks; then closing is handled without an office visit: remote online notarization where Texas permits it, otherwise a mobile notary meets the borrower, and funds disburse electronically or by mailed check.
This is the same math the lender runs on a Texas file. The only moving parts are the value, which comes from the valuation, the balance, which is whatever the payoff statement says, and the tier, which the credit report decides.
Texas’ equity in figures — and how a line fits it.
The statewide figures below frame every Texas line: how many households own, what their homes are worth on the latest estimate, and what they earn. They are context for sizing, not inputs to a credit decision.
Statewide figures provide general market context, not an appraisal or an income calculation. Values and tenure explain why two owners at the same credit tier can see very different lines: one bought years ago and owes little, the other bought recently and owes most of the value. The program ceiling is the same for both.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Where Texas’ homeowners hold their equity — market by market.
The Texas markets below hold the largest pools of owner households in the state’s footprint. Each has a city guide of its own; the program, the ceilings, and the ladder are the same everywhere in the state.
Houston
Roughly 391,519 Houston households own their homes (42% of the total), which makes it a metropolitan market where lines are written against a wide range of equity positions. Census context: median value near $277,800, median household income near $64,813, population near 2.33M.
San Antonio
In San Antonio, owner households number near 289,380, about 52% of households, and the metropolitan market there produces a steady flow of equity lines sized by tier. Census context: median value near $235,700, median household income near $65,056, population near 1.48M.
Dallas
Roughly 226,615 Dallas households own their homes (42% of the total), which makes it a metropolitan market where lines are written against a wide range of equity positions. Census context: median value near $320,700, median household income near $70,518, population near 1.31M.
Austin
Roughly 198,180 Austin households own their homes (43% of the total), which makes it a metropolitan market where lines are written against a wide range of equity positions. Census context: median value near $555,300, median household income near $93,658, population near 980K.
Fort Worth
Roughly 195,072 Fort Worth households own their homes (57% of the total), which makes it a metropolitan market where lines are written against a wide range of equity positions. Census context: median value near $303,000, median household income near $79,507, population near 963K.
El Paso
El Paso ranks sixth by owner households among Lendmire’s Texas markets — roughly 149,169, about 61% of households — a metropolitan market where a home equity line is an everyday tool for an established owner. Census context: median value near $184,500, median household income near $59,745, population near 680K.
The Texas rules that matter most on a line are the ones that do not vary by city: the ceilings and caps by tier, the automated-valuation threshold, the eligible property types, individual or living-trust vesting, and the listing rule. Any state-specific rule is noted in the snapshot.
Four ways Texas homeowners put a home equity line to work.
Texas owners open home equity lines for a handful of reasons that repeat: the renovation, the higher-cost debt worth consolidating, the next property, and the large expense that arrives on its own schedule.
Bridge the move between homes
A Texas owner who wants to buy the next home before listing the current one draws the down payment from a line, closes, and retires the balance from the sale proceeds. On the higher-leverage program the line must be in place before the home is listed.
Cover a large planned expense
Tuition, a medical bill, a wedding, a business need: a Texas owner sizes the line to the expense, takes the closing draw when the bill is near, and repays over the years that follow. A balance paid down can be drawn again for the next one.
Consolidate higher-cost debt
Card balances and personal loans carry their own costs and payments; a Texas owner with equity can draw on the line to retire them and manage one secured balance instead of several unsecured ones. The trade is that the home now secures the debt.
Renovate and repair without a refinance
Repairs rarely come in one bill. A Texas owner takes the minimum draw at closing, per the snapshot on this page, then draws the rest as roof or HVAC needs arise, paying interest only on the balance outstanding during the draw period.
Estimate your Texas home’s available credit line before requesting a quote.
Size the line before you ask for a quote: the Texas value, the balance, the tier, and the occupancy are the only inputs, and the ceiling and cap come from the same guideline source as the snapshot above. The result is an estimate of the credit line, not a decision, and it does not show a rate or a payment.
Texas available-equity calculator
Seeded from Texas’ median value with a modeled balance; every field is editable and the result updates as you type.
Illustrative starting assumptions: a $285,000 home value near Texas’ median owner-occupied home value and a $140,000 modeled remaining first-mortgage balance (U.S. Census Bureau). Combined loan-to-value ceilings and line caps follow the current program tables for the occupancy and credit tier selected and update from Lendmire’s centralized guideline source on the live page. Every field is editable.
Illustrative estimate only — not a credit decision, approval, quote, or commitment to lend. The actual line amount, combined loan-to-value, and eligibility depend on the automated valuation or appraisal, the credit profile, occupancy, documentation, and full underwriting by the selected wholesale lender; the rate, the payment, and any costs are provided in writing by a licensed loan officer. Minimum score, line-size, and draw requirements follow the current program snapshot shown on this page. Licensed in sixteen states for consumer mortgages.
Same equity, four very different ways to use it.
A Texas owner choosing between a HELOC, a cash-out refinance, a closed-end second mortgage, and unsecured credit is choosing a structure, not just an amount. Here is how each one works and where it fits.
A line, a refinance, a closed-end second, or unsecured credit.
Open-ended by design: a credit limit secured by the home, a draw period of interest-only payments, and a repayment period after. The Texas owner who wants flexibility, and who has a first mortgage worth keeping, chooses this.
A refinance resets the whole first mortgage to take cash out once. It suits the Texas owner who wants a single lien and a known amount, and who is content to replace the existing mortgage rather than keep it. For the first-mortgage route, see Lendmire’s refinance program.
A second mortgage that funds once in a lump sum and amortizes from the first payment. No draw period, no revolving balance. It fits when the Texas need is a single known amount, such as one contractor bid, and the owner wants a fixed schedule from day one.
Credit cards and personal loans secure nothing and ask nothing of the home, which is their advantage, and they cost more and cap lower, which is their limit. For a small or short need they can be the right tool; for equity-sized needs they rarely are.
What to prepare for a Texas scenario review.
A home equity line is verified electronically wherever it can be; the items below are what a Texas scenario review typically draws on.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the occupancy, the property, the lien position, and the income picture. Nothing here is legal or tax advice.
Details that can change the line.
A few local and structural details change the size of a Texas line, or whether the file is eligible at all. The ones that come up most often are below.
Use these checks to keep the Texas file clean and fundable.
Before the review, a Texas line stays on track when the credit tier is confirmed, the valuation the line will take is understood, and the property, vesting, and history questions are settled early.
- Confirm the tier: the lender’s report sets the tier, and the ladder sets the ceiling and cap for it.
- Know the valuation: a recent renovation may not show in an automated value.
- Know the history: a foreclosure-family event is declined on one program and seasoned on the other.
The credit tier decides the ceiling and the cap
Leverage steps with the tier. A Texas owner just under a tier boundary sees a lower ceiling and a smaller cap than the owner just above it; the two wholesale programs are compared at each tier and the stronger cell is quoted.
Automated valuation on most lines, appraisal on the largest
The valuation path follows the line size. Up to the threshold a Texas home is valued automatically, which is faster and depends on the model’s view of comparable sales; above it an appraiser visits. A home with unusual features can value differently than the owner expects.
Housing history and derogatory credit
The programs read the last two years of housing payments across every financed property, not only the Texas home being lined. Collections, judgments, and tax liens are either paid at closing or inside small allowances.
A home listed for sale is outside the higher-leverage program, and in some states both
Sequencing matters for the owner who wants to buy before selling: the line on the current Texas home is opened and funded before the listing goes live. A recent listing takes the home outside the higher-leverage program, and outside both programs in some states.
Title must sit with the individual, not an entity
The program does not accept a home vested in a limited liability company, a corporation, a partnership, or an irrevocable, blind, or land trust. A Texas rental already deeded to an entity needs a vesting change before closing, or a different product entirely.
From a Texas prequalification to a funded line.
Four steps, most of them electronic: the scenario, the prequalification, the verification and valuation, and the closing. Here is the Texas path.
Scenario review
A Texas scenario review is a sizing exercise: value, balance, tier, occupancy, and the use of the line. The loan officer confirms eligibility against the program rules and puts the terms in writing.
Prequalification
The property is authenticated, identity is verified, a soft credit pull confirms the tier, a valuation is pulled and the combined loan-to-value is checked, and a prequalified offer is presented. Only after you accept it is a hard credit pull consented to.
Verification and valuation
Income is verified electronically first, through payroll-database matches or permissioned account connections, with documents as the fallback. The automated valuation stands on most lines; an appraisal applies where the size requires it.
Closing and funding
Documents are signed by remote online notarization where Texas permits it, otherwise a mobile notary meets you in person. Funds disburse by electronic transfer to a connected account or by mailed check, and the minimum closing draw funds with the line.
A brokerage that matches the line to the equity.
Lendmire is never the lender. It is the broker that sizes the Texas line against two wholesale programs, matches the structure to the use, and keeps the first mortgage out of the conversation unless a refinance is actually the better answer.
Two programs, the stronger cell quoted
At every credit tier the two wholesale programs offer different ceilings, caps, and runways. Lendmire reads both for the Texas file and quotes the stronger cell, explaining what the leverage costs in runway, or the runway in leverage.
Structure matched to the use
A staged renovation, a consolidation, a down payment on the next property, and a reserve are four different uses, and the size of the line, the closing draw, and the runway should follow the use. A Texas scenario review starts there.
Licensed, consumer-purpose, in writing
The program figures on this page come from one guideline source; the terms for a specific Texas file come from a licensed loan officer, in writing, after the review. Lendmire is a broker, never the lender.
Trusted by homeowners & families alike.
Texas HELOC FAQs
Plain answers to the questions Texas homeowners ask most about a home equity line of credit, in the order they usually ask them.
What is a HELOC, and how is it different from a home equity loan?
A home equity line of credit is revolving credit secured by your home: a credit limit you draw against during a draw period, paying interest only on the balance outstanding, followed by a repayment period in which the balance amortizes. A home equity loan is closed-end: one lump sum, funded at closing, repaid on a fixed schedule from the start.
How much can I borrow on a HELOC in Texas?
As much as sits under the Texas ceiling for your tier, up to the program cap. The homestead rules hold a primary residence below the program’s own ceiling; second homes and investment property are sized on the standard tables.
What credit score do I need for a HELOC?
Eligibility starts at the program floor, but the score does more than open the door: it sets the tier, and the tier sets the combined loan-to-value ceiling and the maximum line. Second homes and rentals start at higher floors than a primary residence.
Do I need an appraisal for a HELOC?
A full appraisal is the exception, reserved for lines above the threshold and the high-balance primary-residence lane. Everything smaller ordinarily uses an automated valuation, with a second valuation ordered where the leverage calls for one.
How do the draw period and the repayment period work?
The draw period is the flexible phase, with interest-only payments; the repayment period is the amortizing phase. The program requires a large share of the line to be drawn at closing, so the balance is never zero on day one.
Can I pay a HELOC off early?
Early payoff is allowed without a penalty. Many Texas owners keep the line open after paying it down, using it as a standing reserve through the rest of the draw period.
Can I get a HELOC on a duplex or a small multi-unit home?
Small multi-unit homes are inside the program with their own credit floor. Occupancy decides the column: live in one unit and the home is a primary residence, rent all of them and it is investment property with the tighter table.
Is the rate on a HELOC fixed or variable?
Variable on both programs, with no fixed-rate conversion. The written terms for a specific Texas line come from a licensed loan officer after the review.
How is income verified for a HELOC?
Electronically first: a payroll-database match or a borrower-permissioned connection to the employer or bank account. Documents, including pay stubs, W-2s, and tax returns, are the fallback. Self-employed owners connect personal and business accounts for a deposit and trend analysis, or provide returns.
Can I get a HELOC on a home I am about to sell?
Only if the line comes first. A recent or active listing takes the Texas home outside the program in Texas, and the state’s waiting period before closing means the line has to be started well ahead of any listing.
A Texas HELOC sized to the use, quoted from two programs.
A Texas home equity line begins with a conversation about the equity and the use. Lendmire compares the two programs at your tier and puts the stronger one in writing.
This guide covers Texas — for the program overview and the tiers, see Lendmire’s home equity line of credit program.
All Texas city guides (85): Abilene · Allen · Amarillo · Arlington · Austin · Baytown · Beaumont · Brownsville · Bryan · Burleson · Carrollton · Cedar Park · Celina · College Station · Conroe · Corpus Christi · Dallas · Denison · Denton · DeSoto · Eagle Pass · Edinburg · El Paso · Euless · Flower Mound · Fort Worth · Fredericksburg · Frisco · Fulshear · Galveston · Garland · Georgetown · Grand Prairie · Grapevine · Harlingen · Houston · Irving · Killeen · Kyle · Laredo · League City · Leander · Lewisville · Little Elm · Longview · Lubbock · Mansfield · Marfa · McAllen · McKinney · Mesquite · Midland · Mission · Missouri City · New Braunfels · North Richland Hills · Odessa · Pasadena · Pearland · Pflugerville · Pharr · Plano · Port Aransas · Port Arthur · Richardson · Rockwall · Round Rock · Rowlett · San Angelo · San Antonio · San Marcos · Sherman · South Padre Island · Sugar Land · Temple · Texarkana · Texas City · The Woodlands · Tyler · Victoria · Waco · Waxahachie · Wichita Falls · Wimberley · Wylie
Related programs: Refinance Loans · Investment Property HELOC · Bank Statement HELOC