Home equity loans · Texas
A home equity loan (HELOAN) gives you a fixed-rate lump sum as a second mortgage, so your low first-mortgage rate stays in place. And you don’t need a W-2 to qualify: my programs accept bank statements, 1099s, a P&L or assets.
By Adam Styer, Senior Loan Officer · NMLS #513013 · Company NMLS #2653540 · Updated October 1, 2026
Texas home equity loans at a glance
Figures reflect programs Adam currently places and Texas homestead rules. Your terms depend on the full file.
Most banks qualify a home equity loan the same way they qualify a first mortgage: tax returns and W-2s. If you’re self-employed, paid on 1099s or living on investments, that’s often where the answer becomes no. My home equity programs accept other ways to document income:
You keep your first mortgage and its rate. The new loan is the only thing priced at today’s rates. Tell me how you earn and I’ll match the right program.
A cash-out refinance replaces your current mortgage with a larger loan. Available cash is what remains after required payoffs and closing costs. Compare the new rate and payment on the full balance, not just the extra funds.
Review my cash-out options →A home equity loan provides a lump sum. A qualifying second mortgage may leave your first loan in place, with a separate payment. Rates are often fixed; confirm the offered rate, term, fees, and combined monthly cost.
Review a home equity loan →A HELOC allows draws up to an approved limit during its draw period. Rates are commonly variable, and payments can change. Compare both the borrowing phase and the repayment phase.
Compare all three structures →These options are secured by your property. Eligibility and Texas homestead requirements depend on the transaction. CFPB: equity borrowing options · CFPB: home equity loans and HELOCs
A DSCR cash-out refinance is a separate investment-property path. Review the rental income, new housing payment, existing payoff, and business purpose. It is not the same as a home equity loan on the home you live in.
Explore DSCR cash-out refinancing →If you have a mortgage rate you want to keep, a cash-out refinance is not the only option worth discussing. A second loan has its own balance, payment, and terms. It may help fund a planned home improvement or consolidate higher-interest debt without replacing the first loan.
The right choice depends on your goal, available equity, qualification, fees, and repayment plan. An equity loan adds a lien against your property. If you cannot make the payments, your home may be at risk.
Compare all three structures. Keeping the first mortgage may be valuable, but the combined payments, fees and repayment terms still need to fit your goal.
| Compare | Cash-out refinance | Home-equity loan | HELOC |
|---|---|---|---|
| Current first mortgage | Replaced with a new mortgage. | May stay in place with a qualifying second lien. | May stay in place with a qualifying second lien. |
| Access to funds | Net cash after paying off required liens and costs. | A lump sum, subject to closing terms. | Draws during an available draw period, subject to the program’s rules. |
| Rate and payment | New terms apply to the refinanced balance. | Often fixed, with a separate scheduled payment. | Often variable; payments can change during draw and repayment periods. |
| Useful question | Does replacing the whole first mortgage improve my overall position? | Do I know the amount I need, and can I manage both payments? | Do I need funds in stages, and can I handle changing payments? |
Compare total costs over the same time period, including the first mortgage when it stays in place. Extending repayment can reduce a monthly payment while increasing total interest. Available equity and Texas homestead requirements must be reviewed for the specific transaction.
Send your refinance or equity scenario · Refinancing with complicated income.
Review equity for a planned goal. Texas homestead loans have specific legal requirements, and lender availability must be confirmed.
Some programs allow second loans on eligible second homes. Occupancy, equity, existing financing, and documentation affect the options.
Second-loan options may be available for eligible rentals. The property's income, financing, and use of funds can affect qualification.
A lower rate or payment alone does not tell you whether consolidation is a good fit. Compare fees, payoff timing, and total interest over the repayment period. Extending the term may lower the monthly payment while increasing total cost.
Using home equity to pay off credit cards moves unsecured debt onto your property. A workable budget and a plan to avoid rebuilding card balances are part of the decision.
A home equity loan is a second mortgage that pays you a lump sum at a fixed rate, with its own fixed monthly payment. Your first mortgage stays exactly as it is. It fits a planned expense like a renovation, paying off higher-rate debt or funding a purchase.
If your first-mortgage rate is lower than today’s rates, a home equity loan usually wins: you only pay the new rate on the new money. A cash-out refinance replaces your whole mortgage at today’s rate, which can make sense when your current rate is already higher or you want one payment. I run both side by side.
On a Texas homestead, your first mortgage plus the new loan can total up to 80% of the home’s value. Example: on a $600,000 home with $300,000 owed, 80% is $480,000, so up to about $180,000 before closing costs. Your credit, income and the appraisal set the final amount.
Texas law requires at least 12 days between the required home equity notice and closing, and you have 3 days after closing to cancel before funds go out. Plan on roughly 3 to 5 weeks from start to cash, depending on the appraisal and documents.
Once every 12 months on your homestead. Texas allows only one home equity loan or cash-out refinance in any 12-month period, so it’s worth borrowing the right amount the first time.
A home equity loan pays a lump sum at a fixed rate with a fixed payment. A HELOC is a line of credit you draw from as needed, usually at a variable rate, so the payment can change. With today’s higher rates, the fixed payment of a home equity loan is easier to plan around.
The Texas homestead rules apply only to the home you live in. For a rental, compare a DSCR cash-out refinance, which qualifies on the property’s rent, or an investment-property second loan where available.
Yes. My home equity programs can qualify you on 12 or 24 months of bank statements, 1099 income or a CPA-prepared P&L instead of tax returns, so your write-offs don’t shrink what you can borrow.
Yes. Some of my home equity programs qualify you on eligible savings and investments instead of a paycheck, using asset depletion. It fits retirees, people between jobs and business owners after a sale.
Adam will help you review the property, qualification path, costs, and repayment plan.
Subject to credit, income, equity, property, state, and program requirements. Not a commitment to lend. HELOC rates and payments may change. Equal Housing Opportunity.
Consumer resources: CFPB: HELOC basics · CFPB: debt consolidation