The Quick Read: Yes, but not before the first anniversary of closing, and only two ways. You can take another Texas cash-out loan, or convert to an ordinary no-cash loan if you take no cash back and stay within 80% of the home’s value. Converting gives up some state protections. Texas law, not a lender’s label, decides which kind of loan you hold.
What Makes a Texas Homestead Loan an “A6” Loan?
Texas treats a cash-out loan on your primary residence as a special kind of loan, called an A6 loan. The name comes from the part of state law that governs it. Texas wrote strict limits into that rule, so the loan carries protections most other states don’t have.
Here is the practical version. If you pulled cash out of your homestead, your loan is probably an A6 loan. A homestead is the home you live in as your primary residence. The rule doesn’t apply to rentals or second homes, so occupancy decides whether it applies at all.
Whether the lender called your loan “cash-out” or “limited cash-out” doesn’t settle it. Fannie Mae’s Selling Guide has its own delivery codes for A6 loans. It says a loan can be a “limited cash-out” refinance in Fannie’s eyes and still be an A6 loan under Texas law. State law decides.
That gap trips people up. A borrower hears “no cash-out” from a loan officer and assumes the A6 rules are gone. They aren’t, unless the loan meets the conditions covered below.
Your Three Paths After a Homestead Cash-Out
You have three realistic options. You can do another A6 cash-out, convert to an ordinary no-cash loan, or leave the loan alone. Each one trades cash, protection and cost differently.
| Factor | Another A6 loan | Convert to ordinary loan | Keep current loan |
|---|---|---|---|
| Cash back | Allowed | None beyond payoff and costs | None |
| Earliest date | After 1st anniversary | After 1st anniversary | Any time |
| Value ceiling | 80% of value | 80% of value | Not applicable |
| A6 protections | Kept | Given up | Kept |
| Best for | Needing more cash | Better terms, no cash | Terms already work |
Texas allows these two exits for a reason. State law has long said that refinancing a homestead debt that includes an A6 loan must produce another A6 loan or a reverse mortgage. Freddie Mac’s Guide confirms the two destinations lenders use today. A loan can go into another A6 loan, or into a refinance that meets the conversion requirements.
If you want to see how the cash-out programs themselves work, start with Lendmire’s overview of cash-out refinance programs. Then come back here for the Texas-specific rules.
How the One-Year Clock Works
The clock starts on the day your A6 loan closed. The new loan can’t close before the first anniversary of that date. This is a state rule, so no lender overlay can shorten it.
Run three timelines.
Refinancing in month eight. Not possible under either path. The rate may have dropped. Your credit may be better. Doesn’t matter. The new loan can’t close yet.
Refinancing at the first anniversary. Now both paths are open. You can choose another A6 loan or the conversion. Note that you’re measuring to the closing of the new loan, not to the day you apply. Applying in month eleven is fine if the new loan closes after the anniversary.
Refinancing in month fourteen. Same options, no extra penalty for waiting. Waiting only helps if something else improves, like your credit or your equity.
One more point. Don’t mix this rule up with a separate one. On the conventional cash-out side, the first mortgage being paid off must be at least 12 months old, measured note date to note date. A borrower must also have been on title for six months, with exceptions for delayed financing, inheritance and legal awards. Both rules happen to use a year. They are different rules, and they come from different places.
The Exit Route: Converting to an Ordinary Loan
You can leave the A6 category only by meeting four conditions. These come from the constitutional text as reproduced by Texas Legal Guide. Think of them as a checklist.
1. The first anniversary has passed. The new loan can’t close before one year after the A6 closing.
2. No cash goes to you. The new loan can cover the old debt and actual costs. Nothing else.
3. The loan stays within 80% of fair market value. The measure is value on the refinance date.
4. You receive a written notice on time. It must arrive after application and well ahead of closing, as the statute requires.
That last item is a legal waiting period, not a processing estimate. It exists so you have time to read what you’re giving up.
Before this exit existed, an A6 loan could be refinanced only into another A6 loan. The old belief that an A6 loan was permanent was true then. It isn’t true now. A voter-approved change opened the conversion path, so a homestead loan can become an ordinary rate-and-term loan if the conditions are met.
At closing, you sign an owner affidavit. It states that the refinance meets the non-equity requirements. Once signed, the lien is treated as an ordinary rate-and-term lien going forward.
A rate-and-term refinance replaces an existing loan with a new one that changes the interest rate, the term, or both, without taking out cash. Elsewhere, such a loan can reach 95% LTV on a one-unit principal residence. LTV is loan-to-value, the loan balance as a percentage of the home’s value. In this conversion, the Texas ceiling of 80% is tighter, so the state limit controls. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
What You Give Up by Converting
Converting costs you protection. That’s the honest tradeoff, and it’s the one most online pages skip.
The required notice spells it out. A non-equity loan allows foreclosure without a court order. It also carries recourse, meaning the lender can pursue you personally for a shortfall after a foreclosure sale. An A6 loan gives you more protection on both points.
So the question isn’t only “can I get a better loan?” It’s “is a better loan worth those protections?” For some homeowners, the answer is yes. They want a lower payment, a shorter term, or a more stable structure, and they’re comfortable with the change. For others, keeping the A6 protections matters more than the terms.
Fees are another open point. A6 loans carry a state cap on lender fees. Whether that cap applies after a conversion depends on which path the loan follows, so don’t assume it carries over. Ask the lender to show you in writing how fees are treated on your specific file.
Think of it this way: the conversion is a trade. You give up a shield and get ordinary loan terms. Make it on purpose.
Does Taking Even a Little Cash Matter?
Yes. Any cash to you beyond the old debt and actual costs puts the loan back in A6 territory. The conversion path allows reasonable costs necessary to refinance. It doesn’t allow a cushion.
Be careful with small amounts. A borrower who “just wants a little extra” may be steering the loan out of the conversion path and back into another A6 loan, with its limits. If the goal is an ordinary loan, plan the payoff and costs with the lender before you apply.
What About FHA and VA Loans?
Streamline products don’t offer a direct exit from a conventional A6 loan. The FHA Streamline and the VA IRRRL (Interest Rate Reduction Refinance Loan) only refinance an existing FHA or VA loan. HUD’s Streamline page says no cash back is allowed above $500, and closing costs can’t be added to the new mortgage amount.
On the VA side, an IRRRL carries a 0.5% funding fee unless you’re exempt, requires no VA appraisal, and needs a net tangible benefit. Seasoning is the later of 210 days and six payments. Those apply only if the A6 loan was itself government-backed.
FHA and VA cash-out refinancing on a Texas homestead is generally treated as restricted or limited, and it is allowed only when the loan meets the A6 rules. Ask a lender to confirm what applies to your situation.
Four Mix-Ups That Cause Bad Decisions
Most confusion comes from mixing up separate clocks and one label.
- The seasoning period. This is the one-year wait after your A6 closing. It’s measured in months and comes from state law.
- The notice period. This is the 12-day window before closing for the conversion notice. It’s measured in days and is a separate requirement.
- The cancel window. After you sign a refinance on your home, you get three business days to cancel. The CFPB notes that Saturdays count. This is called the right of rescission.
- The label. “Cash-out” on a lender’s form is not the same as A6 under Texas law.
And two more myths worth clearing out. Refinancing with your current servicer doesn’t change the seasoning requirement. A new application and a new appraisal are the norm on these loans, subject to lender guidelines. Also, “I can refinance as soon as rates drop” fails in the first year. The clock doesn’t care what the market does.
Which Path Fits You?
Pick the path that matches the goal, not the headline.
If you need more cash. Another A6 loan is the route. It keeps the A6 protections and the limits. The 80% ceiling still applies, so your equity matters.
If you only want better terms. The conversion is the route, if you’re comfortable giving up the protections. No cash back, and a lender who offers this product.
If your current terms already work. Do nothing. A refinance has costs, and a better-sounding loan isn’t automatically a better loan. Compare the new terms to what you have, including how long you plan to stay.
If your home value has dropped. Check the 80% ceiling first. A lower appraisal can block either path. Equity is the gate, and an appraisal decides it.
If your loan was government-backed. Ask about the streamline options in the section above, then compare them to the Texas paths.
Picture a homeowner thirteen months into an A6 loan. The goal is a different term with no extra cash. The conversion fits, as long as the value test passes and the owner is fine with ordinary-loan foreclosure rules. Now picture a second homeowner who wants cash for a major repair. Another A6 loan is the only path that allows it. Same year, same clock, different answer.
How to Confirm Your Loan Type and What to Ask
Start by finding out what you hold. Pull your note and closing documents. Check your title records. Then ask your lender or servicer to confirm in writing whether the loan is an A6 loan. A lender must make that determination on its own anyway, so a written answer is reasonable to request.
Then ask the new lender these questions:
- Do you offer the conversion product, and have you closed one?
- Does my loan meet the one-year requirement, counted from my closing date?
- How will the 80% value test be measured, and what happens if the appraisal comes in low?
- Which fees apply on this path, and which limits apply to them?
- When will I receive the written notice, and who signs it if the home has two owners?
- Will anything I’m asking for count as cash to me?
On that fifth question, married owners may need to receive only one copy of the notice. Lenders commonly have both spouses sign anyway. Expect both signatures.
One more point on programs. Some lenders set stricter rules than the state requires. Those are called overlays. The constitution sets the floor, and a lender can build above it. If one lender says no, another may say yes.
Key Terms Defined
A6 loan: The name for a Texas homestead cash-out loan, taken from the section of state law that governs it.
50(f)(2) conversion: A refinance that turns an A6 loan into an ordinary rate-and-term loan, if the state’s conditions are met.
Homestead: The home you live in as your primary residence.
Seasoning: The waiting period required between two loan events. Here, one year from the A6 closing.
LTV (loan-to-value): The loan balance as a percentage of the home’s value.
Recourse: The lender’s ability to pursue you personally for a shortfall after foreclosure.
Right of rescission: Your three business days to cancel after signing a refinance on your home.
Frequently Asked Questions
Can I refinance right after my homestead cash-out closes?
No. The new loan can’t close before the first anniversary of the original A6 closing. That’s a state rule, so lenders can’t waive it. Applying a bit early is fine if the new loan closes after the anniversary.
Does a rate-and-term refinance count as another cash-out?
Not if it meets the conversion conditions. A refinance that takes no cash, stays within 80% of the home’s value, and follows the notice rules can convert the loan to an ordinary one. Take cash beyond the old debt and actual costs, and it becomes an A6 loan again.
Can I get out of the A6 category entirely?
Yes, through the conversion. You must wait one year, take no cash, stay within 80% of value, and receive the written notice. You also give up the court-order foreclosure and non-recourse protections, so weigh that before you sign.
Can I use a HELOC or home equity loan instead of refinancing?
That’s a different product with its own limits, and some of them overlap with the same state rules. If you only need some cash and your current first loan has good terms, ask a lender to compare the options side by side. Keeping the first mortgage can be a reasonable choice.
Will a new appraisal be required?
Expect one. In practice, lenders underwrite these loans from scratch with a full application and a new appraisal, even with the same servicer. Because the 80% ceiling depends on value, the appraisal can decide whether the refinance works.
Closing Thought
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. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend. Confirm your specific situation with a licensed Texas lender and a real estate attorney before you act.
For your own numbers, request a scenario review with Lendmire.
About Lendmire
Lendmire — NMLS# 2371349 — is a mortgage broker that arranges FHA, VA, conventional and jumbo home purchase and refinance financing in 16 states through wholesale lenders. Every option is subject to the lender’s guidelines and full underwriting. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
2. Freddie Mac Single-Family Guide, Section 4301.7
3. Texas Constitution Art. XVI, Section 50 (reproduced by Texas Legal Guide)
4. HUD: FHA Single-Family Streamline Refinance
5. Consumer Financial Protection Bureau: Right of Rescission
This article is part of Lendmire’s Refinance series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: Should You Use a Cash-Out Refinance to Build an Addition or ADU? · Can a Texas Cash-Out Refinance Be Refinanced Again for a Lower Payment? · Can a Free-and-Clear Texas Home Get a Cash-Out Refinance Twice?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Required disclosures. Lendmire (NMLS# 2371349) operates as a licensed mortgage broker, not a direct lender or depository. The discussion in this article is general in nature and should not be relied upon as financial, legal, or tax advice — every investment scenario is unique and should be reviewed by a qualified professional. Any loan inquiry is subject to lender underwriting, and this article is not a commitment to lend or a guarantee of approval. Mortgage rates, loan terms, and program guidelines vary by borrower, property, and state, and may change without notice. Equal Housing Opportunity. Verify licensure at NMLS Consumer Access.