Equity Access Advisory • Austin & Texas

Texas Home Equity Loans & HELOCs

Section 50(a)(6) Rules. 80% Max CLTV. Wholesale & Non-QM Options.

Accessing home equity in Texas is governed by unique constitutional consumer protections under Section 50(a)(6). Whether you want a flexible Home Equity Line of Credit (HELOC), a fixed-rate second mortgage, or a Non-QM equity loan for self-employed cash flow, Adam Styer guides you through the statutory timelines and wholesale equity structures.

See My Options Book a 15-Min Call (512) 956-6010

By Adam Styer, Senior Loan Officer • NMLS #513013 • Company NMLS #2072896

Constitutional Cap
80% Max CLTV
Total debt cannot exceed 80% of home value
Cooling-Off Period
12-Day Notice
Mandatory statutory consumer waiting period
Fee Limitation
2% Fee Cap
Lender origination fees legally capped at 2%
Closing Location
Title Office / Atty
Closings must occur at licensed title or attorney office
What should I know about this option?

What Are the Texas Section 50(a)(6) Home Equity Rules?

Under Section 50(a)(6) of the Texas Constitution, homeowners enjoy significant legal protections when borrowing against their primary homestead equity. The foundational rule is the 80% Combined Loan-to-Value (CLTV) cap: your primary mortgage plus your equity loan or HELOC cannot exceed 80% of your home's appraised fair market value.

Texas law also requires a 12-day consumer disclosure period (the loan cannot close until 12 days after you receive the statutory notice of homeowner rights), restricts fees to no more than 2% of the loan amount, and mandates that closings take place at a licensed title company or attorney office. While traditional retail banks enforce rigid W-2 requirements, wholesale broker Adam Styer provides both conforming 50(a)(6) loans and Non-QM bank statement equity options for self-employed homeowners.

Common Situations

Who This Program Is Built For

Clear borrower profiles where this financing structure provides substantial advantages.

Home Renovators & Improvers

Homeowners funding major renovations, pool additions, or ADU construction without refinancing their existing low-rate first mortgage.

Debt Consolidators

Replacing high-interest credit card balances (18%–28% APR) or personal loans with low fixed-rate mortgage interest.

Self-Employed Business Owners

Extracting working capital or acquisition liquidity using bank statements or 1099 cash flow rather than personal tax returns.

Real Estate Investors Unlocking Primary Equity

Tapping equity in a primary Texas homestead to fund down payments on investment rental properties.

Options & Milestones

Simple Options & 3-Step Process

Clear paths and milestones supported by independent wholesale processing.

Texas HELOC (Line of Credit)

A revolving credit line attached to your homestead equity up to 80% CLTV. Draw funds as needed, pay interest only on what you borrow.

Best for: Variable expenses & phased projects

Fixed-Rate Texas Home Equity Loan

A lump-sum second mortgage with a predictable fixed interest rate and fixed monthly payment, preserving your existing first mortgage rate.

Best for: Major one-time expenses or debt payoff

Texas Section 50(a)(6) Cash-Out First

Refinance your entire first mortgage to lower your rate and extract a single lump sum of cash up to 80% CLTV.

Best for: Restructuring total housing debt
01

Equity & CLTV Calculation

Adam evaluates your current home value and existing mortgage balance to calculate your maximum available borrowing capacity under the 80% cap.

02

Statutory 12-Day Notice

We issue the required Texas Section 50(a)(6) consumer disclosure to initiate the mandatory 12-day cooling-off countdown immediately.

03

Title Office Funding

Appraisal, title verification, and document preparation are coordinated for a smooth, compliant closing at your local title office.

Illustrative Scenario

In Action: A Clear Scenario

A transparent look at real-world numbers and successful funding.

Illustrative Case • Debt Consolidation & Renovation Austin (Mueller), Texas

Mueller Homeowner — $140,000 Equity Access Preserving 3% First Mortgage

The Situation: An Austin homeowner owned a Mueller home appraised at $800,000 with a $450,000 first mortgage locked at a 3.125% interest rate. They wanted $140,000 to remodel their kitchen and pay off $35,000 in credit card balances.

The Dilemma: A retail bank proposed a full cash-out refinance into a new $590,000 first mortgage at 6.75%, which would have surrendered their historic 3.125% rate and increased their monthly mortgage payment by over $1,400/month.

The Wholesale Solution: Adam structured a standalone Texas Section 50(a)(6) fixed-rate second mortgage for $140,000. Combined debt was $590,000 (73.7% CLTV, well within the 80% Texas limit). The homeowner kept their 3.125% first mortgage untouched, eliminated their high-interest credit card debt, and paid off the credit cards without refinancing the first mortgage.

Disclosure: Illustrative scenario based on composite borrower profile. Actual interest rates, loan limits, and qualification guidelines depend on credit profile, property appraisal, and lender criteria.

Supporting Research & Worksheets

Explore the Details

In-depth underwriting guidelines, loan matrices, and interactive tools in our specialist resources.

Mortgage Refinance Austin Options Explore Refi →

Compare standalone home equity loans against a full rate-and-term or cash-out first mortgage refinance.

Monthly Payment & Equity Calculator Calculate Payment →

Model monthly payments across fixed second mortgages and full refinance structures.

Buy Before You Sell Strategy Explore Move-Up →

How to use home equity bridge loans to purchase your next home before selling your current one.

Texas Closing Costs & Statutory Fees View Worksheet →

Understanding Texas title policy fees and the statutory 2% fee limitation.

Should I keep my current mortgage →

Texas home equity loan questions →

Clear Answers

Frequently Asked Questions

Straightforward answers to the questions Central Texas borrowers ask most.

What is the 80% rule for Texas home equity loans?

Under Section 50(a)(6) of the Texas Constitution, the total of all mortgage debt on your primary residence (your first mortgage plus the new home equity loan or HELOC) cannot exceed 80% of the home's appraised fair market value. For example, on a $600,000 home, total allowable debt is $480,000.

Why is there a 12-day waiting period on Texas equity loans?

Texas law mandates a 12-day cooling-off period starting the day you receive the written Section 50(a)(6) notice of homeowner rights. The loan cannot close until at least 12 calendar days have elapsed, giving homeowners time to review terms without pressure.

Can I get a home equity loan if I am self-employed with tax write-offs?

Yes! While conventional retail banks require tax returns that show high net taxable income, we offer Non-QM home equity loans that qualify self-employed borrowers using 12 or 24 months of bank statements.

Where must a Texas home equity loan close?

By law, a Texas Section 50(a)(6) home equity loan can only be closed at the permanent physical office of a licensed title company, an attorney at law, or the lender. It cannot be closed at your kitchen table or via mobile notary.

Can I get a home equity loan on a Texas investment property?

Yes, and investment properties are NOT subject to the Section 50(a)(6) rules! The 80% cap, 12-day cooling-off period, and fee limits apply only to your primary homestead. Equity extraction on Texas rental properties is treated as standard commercial/investor lending.

The Wholesale Advantage • Many wholesale lenders • Wholesale Pricing Without Corporate Bank Margins • Clear communication and the conditions list up front • Direct 1-on-1 Strategy from Adam Styer

Confidential Review

Check Your Financing Options

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