HELOCs in Texas
What a typical Texas home could support, current HELOC rates, and the Texas rules that affect a home equity line, from a lender licensed in Texas.
Reviewed by Shawn Way, NMLS #1007298★ 4.9 from 111 reviewsUpdated
How much can you borrow with a HELOC in Texas?
About $85,140 is what a typical Texas home could support as a HELOC. That assumes the median $283,800 home, half of it still owed and an 80% combined cap. Typical HELOC rates for 720+ credit run about 8.00%–9.75% APR: the prime rate (7.00%) plus a margin. Texas law caps every HELOC at 80% combined loan-to-value, below the 85% many lenders allow elsewhere.
On this page
Texas home equity by the numbers
Texas's median owner-occupied home value is $283,800, the 21st highest of the 37 states and districts where Shawn is licensed. Here's what that home could support at an 80% cap, depending on how much is still owed:
| Mortgage balance | Possible line | Interest-only at 7.75% APR, fully drawn |
|---|---|---|
| $70,950 (25% owed) | $156,090 | $1,008 |
| $141,900 (50% owed) | $85,140 | $550 |
| $212,850 (75% owed) | $14,190 | $92 |
Median value of owner-occupied housing units, U.S. Census Bureau, American Community Survey 5-year estimates, 2020–2024. Your home's value and your income set your real number.
Use a free calculator, or get your HELOC rate from Shawn.
Keeping a low rate: a Texas example
On a typical $283,800 home with $142,000 left on a 3.5% mortgage, borrowing $50,000 with a HELOC instead of a cash-out refinance saves about $92 a month:
| Option | Monthly cost |
|---|---|
| Keep the 3.5% mortgage, add a $50,000 HELOC (7.75% APR, 20-year payoff) | $1,121 |
| Cash-out refinance of $192,000 (6.5% illustrative rate, 30 years) | $1,214 |
Mortgage plus HELOC payments shown together; refinance shown as principal and interest. Run your own numbers.
Your own maximum
Your income has to support the payment too. Most lenders want total monthly debts under about 43% of gross income. Calculate your own line.
HELOCs Shawn's team has funded in Texas
Since 2023, loan officers on Shawn Way's team have funded 139 HELOCs on Texas homes, the #18 state for the team. The median line here was $88,000, about the same as the team's median of $92,000 across all states.
| HELOCs funded | 139 |
|---|---|
| Median line | $88,000 |
| Middle half of lines | $63,000 to $118,000 |
| Median home value | $360,000 |
| Median line as a share of home value | 24% |
| Median starting rate, 2026 | 10.34% |
| Fixed-rate share | 76% |
| Borrowers with 720+ credit | 28% |
What HELOC rate do Texas borrowers actually get?
In 2026, HELOCs Shawn Way's team funded in Texas started at a median 10.34%, 1.64 points higher than the team's median of 8.70% across all states. The difference reflects the mix of credit scores, loan sizes and property types here, not a different price for the same borrower.
From the team's funding records, with no borrower details. Rates depend on credit, line size and the date funded. Method and the full data: the HELOCHQ HELOC Report.
Owning a home in Texas: what lenders notice
Texas homestead protections shape every home equity loan, as described below. Texas has no state income tax, but property taxes are among the highest in the country and count in your debt-to-income ratio. Hail and wind claims are common across North Texas and the Gulf Coast, and the Texas Windstorm Insurance Association covers coastal wind risk when private carriers won't.
Texas rules that affect your HELOC
- Texas limits every home equity loan and HELOC to 80% combined loan-to-value, lower than the 85% many lenders allow elsewhere. See the full Texas rules below.
- No separate statewide mortgage tax on our list; recording charges appear on your Loan Estimate.
- Texas is a community property state. If you're married, your spouse will usually need to sign the HELOC documents, even if only one of you is on the loan.
- Texas doesn't tax wages, so take-home pay runs higher than in many states at the same income. Lenders qualify you on gross income, so this doesn't change your debt-to-income ratio, but it can make the payment easier to carry.
If payments ever become a problem
Most foreclosures in Texas are nonjudicial, through a trustee's sale without a court case, so timelines are short. If payments get hard, call the lender early. What happens if you can't pay.
Texas home equity rules: Section 50(a)(6)
The Texas Constitution sets rules for every home equity loan and HELOC on a homestead. They protect borrowers and change how a Texas HELOC works:
- 80% cap. The new line plus all other liens can't exceed 80% of fair market value. Draws stop if the balance would go above that.
- 12-day wait. Closing can't happen until 12 days after you apply or receive the state's home equity notice, whichever is later.
- 2% fee cap. Lender fees can't exceed 2% of the loan amount. Appraisal, survey, title exam and the base title policy are excluded.
- $4,000 minimum draw. Each advance on a Texas HELOC must be at least $4,000, and you can't draw with a credit card, debit card or unsolicited check.
- One at a time. Only one home equity loan of this type can be on your homestead, and generally no more than one new one per year.
- No personal liability. The loan is non-recourse except in cases of fraud, and foreclosure requires a court order.
- 3-business-day right to cancel after closing.
Source: Texas Finance Commission home equity notice.
Where we lend in Texas
West Capital Lending, Inc. is licensed to lend in Texas. Shawn Way holds Texas Mortgage Loan Originator license under NMLS #1007298, first issued 04/17/2023. We lend statewide, including Houston, San Antonio, Dallas, Austin and Fort Worth. Beyond HELOCs we offer purchase and refinance mortgages in Texas: conventional, FHA, VA, USDA, jumbo, self-employed, DSCR, construction and reverse mortgages.
Reviews from Texas borrowers
2 Texas borrowers have reviewed Shawn on Experience.com, averaging 5.00 stars.
- Brooke E.Texarkana, TX · Oct 2026★5
- Ashish K.Celina, TX · Sep 2024★5
Names, locations, dates and star ratings from Shawn Way's verified reviews on Experience.com. Read the full reviews (4.9 from 111).
Common questions
Is HELOC interest deductible in Texas?
Texas has no state income tax on wages, so only the federal rule matters: interest can be deductible when the money buys, builds or substantially improves the home and you itemize. The rules.
Nearby states we lend in: HELOCs in New Mexico, HELOCs in Oklahoma, HELOCs in Arkansas.
More: credit score tiers · second homes · rentals.
Sources
Official sources behind this guide.
- What is the difference between a home equity loan and a HELOC? · Consumer Financial Protection Bureau
- What you should know about home equity lines of credit (booklet, PDF) · Consumer Financial Protection Bureau
- Publication 936, Home Mortgage Interest Deduction · Internal Revenue Service
- Bank Prime Loan Rate (DPRIME) · Federal Reserve Bank of St. Louis, FRED
- Regulation Z §1026.40: Requirements for home equity plans · Consumer Financial Protection Bureau
- Regulation Z §1026.15: Right of rescission · Consumer Financial Protection Bureau
- Find a HUD-approved housing counselor · Consumer Financial Protection Bureau