HELOC Options in Lewisville, Texas

A HELOC is a revolving line of credit secured by your home equity. Unlike a cash-out refinance that replaces your mortgage, a HELOC works alongside your existing mortgage as a separate lien. In Texas, HELOCs are subject to Section 50(a)(6) home equity requirements.

Texas law limits the maximum line of credit to 80% of the home's market value minus any existing loans. Additionally, no advances may be made if the total principal outstanding exceeds 50% of the home's fair market value at account establishment. Borrowers should review these limits, draw periods, repayment terms, and how HELOCs compare with cash-out refinance options before applying.

Conventional HELOC

Standard conventional HELOC options for eligible Texas homeowners. Subject to Texas Section 50(a)(6) requirements including 80% combined LTV and 50% HELOC LTV limits. Variable or fixed-rate options may be available depending on the lender.

Interest-Only HELOC

Interest-only payment options during the draw period, typically 10 years. Lower monthly payments during the draw period, followed by principal and interest payments during the repayment period. Subject to lender requirements and underwriting approval.

Principal & Interest HELOC

Consistent payments of both principal and interest during the draw period. Predictable monthly payments throughout both draw and repayment periods. May result in less total interest paid over the life of the loan.

Jumbo HELOC

HELOC options for higher-value properties with loan amounts above standard limits. Available for properties in qualifying markets with sufficient equity. Subject to stricter credit, income, and reserve requirements.

Fixed-Rate Conversion HELOC

Convert all or a portion of the outstanding variable-rate balance to a fixed-rate loan. Provides payment stability and protection from rate increases. Availability and terms depend on lender requirements and program guidelines.

Cash-Out Refinance Alternative

Compare HELOC options with Texas cash-out refinance alternatives. A HELOC keeps your existing mortgage intact while providing access to equity. Subject to Texas home equity requirements and lender eligibility guidelines.

Texas HELOC transactions are subject to specific rules under Section 50(a)(6) of the Texas Constitution. These rules differ from standard mortgage or refinance requirements and include specific LTV limits, advance minimums, and property restrictions.

• 80% combined LTV limit: The maximum line of credit is 80% of the home's market value minus any loans secured by the home.
• 50% HELOC LTV cap: No additional advances may be made if the total principal outstanding exceeds 50% of the home's fair market value at account establishment. If exceeded, the balance must be repaid below 50% before subsequent advances are permitted.
• Minimum advance: Each advance must be at least $4,000.
• Property type: Must be single-family, owner-occupied homestead property in Texas. Condos, townhomes, and duplexes may qualify. Manufactured and mobile homes typically do not.
• One equity loan at a time: Borrowers can generally have only one Home Equity Loan or HELOC at a time on a Texas homestead.
• Closing requirements: Must close at a Texas title company or attorney's office. Three-day right of rescission applies.
• Agricultural exemptions: Properties with agricultural exemptions may have additional restrictions.

Current Mortgage Statement

Most recent statement showing current loan details and balance.

Homeowners Insurance

Current policy declarations page and contact information.

Income & Employment

W-2s, pay stubs, tax returns, or business documentation as applicable.

Asset Statements

Bank statements or investment account statements when required.

Credit & Identification

Credit authorization and valid government-issued identification.

Property Information

Property address, occupancy status, and current lien documentation.

Property Value Documentation

Appraisal or automated valuation model (AVM) to determine available equity and LTV.

Title & Lien Documentation

Title search, lien history, and prior home equity loan details when applicable.

What is a HELOC in Texas?

A HELOC is a revolving line of credit secured by home equity, subject to Texas Section 50(a)(6) requirements including 80% combined LTV and 50% HELOC LTV limits. Not all borrowers or properties will qualify.

How does a HELOC differ from a cash-out refinance?

A HELOC is a separate line of credit that works alongside your existing mortgage. A cash-out refinance replaces your existing mortgage with a new larger mortgage. HELOCs typically have variable rates, lower closing costs, and flexible draw periods. Cash-out refinances typically have fixed rates, higher closing costs, and lump-sum disbursement.

What are the Texas HELOC LTV limits?

Texas law limits the maximum HELOC to 80% of the home's market value minus any existing loans. Additionally, no advances may be made if the outstanding principal exceeds 50% of the home's fair market value at account establishment. If exceeded, the balance must be repaid below 50% before subsequent advances are permitted.

Can I have more than one HELOC in Texas?

Generally no. Texas law typically allows only one Home Equity Loan or HELOC at a time on a homestead property. Borrowers with existing home equity loans must pay them off before obtaining a new HELOC.

What is the minimum advance on a Texas HELOC?

Each advance on a Texas HELOC must be at least $4,000. This is a requirement under Texas Section 50(a)(6) home equity rules.

Can Liberty Home Mortgage compare HELOC and cash-out refinance options?

Yes. Liberty Home Mortgage can help eligible Texas homeowners compare available HELOC, cash-out refinance, and other equity access options based on the borrower's goals and qualification profile.

What property types qualify for a Texas HELOC?

Texas HELOCs are generally limited to single-family, owner-occupied homestead properties. This includes houses, condos, townhomes, and duplexes. Manufactured homes, mobile homes, and properties with agricultural exemptions may not qualify or may have additional restrictions.

What is the 2026 conforming loan limit?

The 2026 baseline conforming loan limit for most U.S. counties is $832,750. Higher limits apply in high-cost areas. Loans above this limit may be classified as jumbo loans, which have different requirements.