The Quick Read: Texas caps how much a homeowner can borrow against a primary residence, and the cap is the same for a jumbo loan as for any other. The new loan plus every other lien on the home may not exceed 80% of the home’s value. A 12-day waiting period applies before closing, and a one-year gap is required between Texas equity loans. Jumbo investors can be stricter than the state, never looser.
Texas Jumbo cash-out estimate
Enter the value, the balance, and the cash wanted; choose the occupancy and the structure; the lanes, the payment, and the reserves follow.
Editable benchmark: 7.40% as of October 15, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a jumbo cash-out refinance quote.
Illustrative starting assumptions: a $2,000,000 home value in the jumbo range, a $1,000,000 current balance, a principal residence on a thirty-year fixed structure at the current Freddie Mac conforming benchmark, and property taxes and insurance estimated at typical rates for Texas. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conforming benchmark, a market reference and not a jumbo cash-out refinance quote; a jumbo loan is priced by the lender at lock. The lanes shown are the wholesale cash-out lanes behind this page as of the snapshot date; the calculator reads each lane’s leverage, loan maximum by occupancy, cash-in-hand cap, and reserves as the lane table states them, and a Lendmire loan officer confirms the lane on the file. The cash available is the loan the lane allows less the balances paid off, before closing costs, which are not included; on most lanes a jumbo cash-out begins one dollar above the conforming limit for the county, and two lanes start at a stated dollar floor instead. The HELOC line is the line program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages. On a Texas homestead the state constitution caps a cash-out refinance at eighty percent of value and adds a waiting period, a prescribed closing location, and a fee cap; the calculator applies the Texas cap to a principal residence.
Most of the confusion on these files comes from treating the cap as a lender preference. It is not. The limit sits in the Texas Constitution, so no jumbo lane, no portfolio lender and no exception request can move it. What changes with jumbo is everything around the cap: appraisals, reserves, ratios and which lenders will take a Texas equity loan at all.
This article walks through the mechanics in order: where the rules come from, how the cap is figured, the waiting periods, closing day, and what to do when the cap leaves you short.
Key Terms Defined
A6 loan (Section 50(a)(6)): A Texas home equity loan, named for the part of the Texas Constitution that allows cash to be borrowed against a homestead.
Combined loan-to-value (CLTV): All loans secured by the home, added together, divided by the home’s appraised value.
Homestead: The home a borrower lives in as a primary residence, which Texas law protects and regulates.
Cancellation: The federal right to cancel certain refinances after closing, with the exact timing and eligibility depending on the loan type and the borrower’s circumstances.
Jumbo loan: A loan that starts one dollar above the county’s conforming limit.
Where the Cap Comes From, and Why Jumbo Doesn’t Change It
Texas home equity lending is governed by Article XVI, Section 50(a)(6) of the Texas Constitution. State agencies interpret it in Title 7, Chapter 153 of the Texas Administrative Code, as the Texas Real Estate Research Center at Texas A&M explains. Because the rules are constitutional, a lender cannot waive them or grant an exception.
The state’s own home equity consumer disclosure tells the borrower that the new principal, added to every other lien against the home, is limited to a share of the home’s value. In practice that share is 80%.
Jumbo status does not create a separate Texas cap. A large balance gets the same 80% ceiling as a small one. What jumbo adds is a layer of investor guidelines on top. Across the wholesale jumbo programs Lendmire places files with, those guidelines cover credit score, ratio ceilings, reserves and appraisals. They can be tighter than Texas. They cannot be looser.
Here is the part that surprises people. On the jumbo lanes, leverage can reach 90% on some purchase and refinance structures, and several lanes reach 89.99% CLTV. On a Texas homestead cash-out, none of that matters. The state’s 80% ceiling controls, and the program ceiling above it is simply unused. Cash-out leverage on the jumbo lanes already runs lower than purchase leverage, and Texas pulls it lower still. All figures are subject to lender guidelines and full file review.
How the Cap Is Calculated
The cap counts every lien, not only the new loan. The room you have is the 80% ceiling minus your existing balances, minus closing costs rolled into the loan.
Run it in words, not dollars. The ceiling leaves a modest slice of value to work with, and closing costs come out of that. The cash in hand is smaller than the headline number suggests.
Now picture a homeowner who bought recently with a down payment of only 15%. The first mortgage sits near 85% of value. That is already above the ceiling. Cash available is zero. A refinance that pays off the existing balance and puts cash in the borrower’s hands cannot be written.
Third case: a borrower with a first mortgage at 50% of value and a second lien at 10%. Both count. The ceiling leaves about 20 points of value, before costs.
| Situation | Existing liens vs. value | What the cap does |
|---|---|---|
| Light balance | Well under 80% | Leaves room for cash |
| Heavy balance | Near or above 80% | Leaves little or none |
| First plus second lien | Combined counts | Both reduce room |
| Low appraisal | Value drops | Ceiling and cash shrink |
The appraisal matters more on jumbo files than on small ones. Each point of value moves the ceiling by a larger absolute amount. Above a lane’s threshold amount, two appraisals are required, and the lower value can govern the file. Texas files also need a fresh appraisal; a value-acceptance option generally does not apply on an A6 loan.
The Waiting Periods
Three clocks run on a Texas homestead cash-out. They are separate, and none replaces another.
The pre-closing waiting period. The state disclosure says the loan may not close until a required waiting period has passed after you submit the application or after you receive the notice. The OCCC’s regulatory commentary puts it plainly: the clock runs from the later of the application date or the date the owner receives the required disclosure. If the notice goes out late, the closing date moves with it. Every owner on title, and a spouse, must receive the notice.
The three-business-day rescission window. After closing, federal law gives the borrower three business days to cancel a refinance. The CFPB says waiving it takes a bona fide personal financial emergency, stated in the borrower’s own written statement. Funds follow the end of that window. A contractor deadline or purchase date has to allow for both clocks.
The one-year rule. Under 7 TAC §153.14, an equity loan may not close before the first anniversary of the closing of any other equity loan on the same homestead. It applies even if the earlier loan was paid off. The only exception is a sworn request tied to a declared state of emergency. A modification that changes terms without replacing the note is not barred.
| Clock | Starts | Source type |
|---|---|---|
| 12-day wait | Later of application or notice | Texas |
| Rescission | Closing | Federal |
| One-year gap | Prior equity loan closing | Texas |
Closing Rules
Texas requires an A6 loan to close only at the office of the lender, an attorney, or a title company, per the OCCC’s emergency measures guidance. That rules out signing at the kitchen table with a mobile notary.
The other closing mechanics that trip up files:
- Signers. Every owner and a spouse must be at the table and have received the notice. Adding an owner late can restart the 12-day count.
- Fair market value acknowledgment. The borrower signs an acknowledgment of the home’s fair market value, a requirement the state added to its rules.
- First payment timing. The first payment must be due no sooner than a set period after closing; the Texas Register adopted rules reference a two-month period.
- Fee limit. The rules refer to a two percent limitation on certain lender charges. Which charges count is a legal question for the closing attorney or title company, so treat it as a cap on certain lender charges only.
- Consumer disclosures. Because this is a consumer mortgage, the Loan Estimate and Closing Disclosure timing rules apply alongside the Texas notice.
The most common failure mode is a closing date set before the notice clock has run. A defective A6 loan can be unenforceable, and the lender has to cure it. Files that start with the notice, not the closing date, stay clean.
Where the Texas Rules Meet Jumbo Programs
Jumbo guidelines stack on the constitution. Across the wholesale jumbo programs Lendmire works with, the headline lane uses a 660 decision score and loans up to $5,000,000 on the largest lanes. Ratio ceilings run to 50% on the fixed lanes, 45% on the adjustable lanes and 43% on the interest-only lanes. Reserves are counted in months of the full payment and rise with the loan amount. Cash-out sits at lower leverage than purchase, with a cash cap on the largest lanes. These are program guidelines, subject to lender guidelines and full file review, and nothing here is a commitment to lend.
Two practical points follow. First, many wholesale lenders avoid Texas A6 loans entirely, so the pool of lanes that will take one is narrower than for a jumbo cash-out in other states. Second, program features like non-warrantable condominium lanes or interest-only structures need to be checked against what the Texas rules allow for a homestead.
The state-law floor is the same for everyone. For a deeper look at how the cap limits the cash at closing, see Lendmire’s piece How Texas Homestead Rules Cap a Jumbo Cash-Out Down Payment. Borrowers can also review Lendmire’s jumbo cash-out refinance program to see how the lanes are structured.
What If the Cap Leaves You Short?
When existing balances eat the ceiling, the borrower has four honest paths.
| Option | How it works | Trade-off |
|---|---|---|
| Rate-and-term refinance | No cash to the borrower beyond permitted payoffs and costs | No cash out |
| Smaller cash-out | Take less than the ceiling allows | Less cash |
| Wait and let value or balance change | Appraisal rises or balance falls | Time |
| Do nothing | Keep the existing loan | Cash need unmet |
A refinance that pays off the existing loan and delivers no cash beyond payoffs and costs is generally not an A6 loan. That distinction is where Texas law and agency labels split. Texas law decides whether a loan is an A6; an agency guide only decides how the loan is delivered. A loan can be cash-out for one purpose and not for the other.
Getting Out of an Equity Loan Later
A homestead that carries an A6 loan can later be refinanced out of it, but only when specific conditions are met. These generally include staying within the 80% limit, taking no cash beyond the payoff and actual closing costs, and completing the notice and 12-day wait. The exact conditions sit in the state’s Chapter 153 interpretations, so a closing attorney should confirm them before the application goes in.
Questions That Trip Up Texas Files
Three assumptions cause most of the rework:
1. “A bigger program can exceed 80%.” It cannot. No lane, jumbo or otherwise, overrides the constitution.
2. “The cap counts only the new loan.” It counts every lien.
3. “The 12 days start at application.” They start at the later of application or notice.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Frequently Asked Questions
Does a jumbo loan change the Texas cash-out cap?
No. The 80% combined ceiling comes from the Texas Constitution and applies equally to jumbo and conforming loans. Jumbo investors can set tighter guidelines, never looser ones.
Does the cap count my second mortgage?
Yes. Every lien against the home counts toward the ceiling, including a first mortgage, a second lien and a home equity line. Available cash is the ceiling minus all existing balances and closing costs.
When does the 12-day clock start?
It runs from the later of the application date or the date you receive the required state notice. Every owner and a spouse must receive that notice. A late notice moves the earliest closing date.
Can I do another Texas equity loan right after one?
Generally not within a year. The rule bars a new equity loan before the first anniversary of the prior one, even if the earlier loan was paid off. A sworn emergency request is the only exception, and a modification of terms is not barred.
Can I sign at home?
Not for a Texas A6 loan. Closing must happen at a lender’s office, an attorney’s office or a title company, which rules out mobile signing at the house.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
For the program’s current guidelines, see jumbo loan programs.
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References
1. Texas Real Estate Research Center, Texas A&M
2. Texas OCCC – Regulatory Commentary
3. CFPB – Can I waive my right to rescind?
5. Texas OCCC – COVID-19 Emergency Measures guidance
This article is part of Lendmire’s Jumbo Loans series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Jumbo Cash-Out Refinance Rules for a Texas Second Home · Can a Texas Homestead Jumbo Cash-Out Fund a Second Home? · How to Size a Jumbo Cash-Out on a Texas Homestead
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Legal disclosures. Lendmire (NMLS# 2371349) is a state-licensed mortgage brokerage that arranges financing through wholesale lender relationships. Lendmire is not a direct lender, depository institution, or registered financial advisor. The discussion above is general informational content about real estate financing — it is not financial, legal, or tax advice, and readers should consult licensed professionals for guidance on their individual circumstances. Loan inquiries are subject to lender underwriting; this article does not represent a commitment to lend. Loan terms, rates, and qualification standards vary by borrower, property, and state, and are subject to change at any time. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.