Texas home equity calculator.

Texas writes its home equity limits into the state constitution: all loans on your home together can reach 80% of its value, and most lender fees are capped at 2%. Enter your numbers to see the most you could borrow on a HELOC or home equity loan, whether your request fits, and the fee cap in dollars. Results show as you type, with no email.

Your Texas home

Example: $313,200, the Texas median for owner-occupied homes (Census, 2024). The 80% limit uses the fair market value on the day the loan closes.

Other loans: a second mortgage, a HELOC balance or any other lien on the home. Texas allows only one home equity loan at a time, so a new one would typically pay off an existing one.

What you want
Type of loan

The 80% limit and the 2% fee cap apply to both.

Your Texas home equity

Largest HELOC credit line at the 80% limit

$70,560

2% fee cap on $50,000

$1,000

80% of your home’s value$250,560
Loans on the home now$180,000
Combined loan-to-value now57.5%
Combined loan-to-value with your request73.4%
2% fee cap at the largest amount$1,411
Fits the 80% limitYes, $20,560 to spare

Under the Texas 80% limit you could borrow up to $70,560 with a HELOC: 80% of $313,200 is $250,560, and you owe $180,000. Your $50,000 request fits, bringing all loans on the home to 73.4% of its value, and the fees that count toward the 2% cap can total no more than $1,000.

Read the full Texas HELOC rules, the Texas cash-out refinance rules, or VA cash-out refinancing in Texas.

These figures are estimates for planning only and are not an offer, a quote or legal advice. The appraised value, the lender’s own limits and its credit and income review decide what you can borrow, and many lenders approve less than the maximum. See our disclosures.

How this is calculated

Texas home equity loans and HELOCs are governed by Article XVI, Section 50 of the Texas Constitution and the interpretations in Title 7, Chapter 153 of the Texas Administrative Code. Every lender making one on a Texas homestead has to follow them.

  • The most you could borrow

    home value × 80% − all loans on the home

    Section 50(a)(6)(B): the new loan plus the outstanding principal of all other debt on the homestead may not exceed 80% of its fair market value on the day the loan is made. $313,200 × 80% = $250,560; minus $180,000 owed leaves $70,560. For a HELOC, Section 50(t)(5) applies the same limit to the full credit line.

  • Combined loan-to-value

    (all loans on the home + new loan) ÷ home value

    ($180,000 + $50,000) ÷ $313,200 = 73.4%. A request fits when this is 80% or less.

  • 2% fee cap

    loan amount × 2%

    Section 50(a)(6)(E) caps the fees you are required to pay at 2% of the original principal amount: $50,000 × 2% = $1,000, or $1,411 on a $70,560 maximum. Interest, bona fide discount points and the four excluded items listed below are on top of the cap.

  • Homestead only. These rules cover a home equity loan or HELOC on your Texas homestead, the home you live in, and the homestead is the only collateral allowed.
  • Outside the 2% cap. A third-party appraisal, a survey by a state registered or licensed surveyor, the state base premium for a mortgagee title policy with endorsements, and a title examination report that costs less than that base premium without endorsements. This page applies the cap to the amount you enter; on a HELOC, ask the lender which principal amount it uses.
  • HELOC rules. The credit limit is set at closing and does not change for the life of the line (7 TAC 153.86). Each draw must be at least $4,000, and fees are charged only when the line is opened, never per draw (Section 50(t)).
  • One at a time. Texas allows one home equity loan at a time, and no more than one every 12 months on the same home. Lenders may set lower limits than 80%, and they decide the value with an appraisal; you and the lender sign a written acknowledgment of the fair market value at closing.

Sources

  • Texas Constitution, Article XVI, Section 50(a)(6)(B), (E), (K), (M) and (Q)(ix), and Section 50(t), as amended November 7, 2017 (Texas Legislature Online, accessed October 22, 2026).
  • 7 Texas Administrative Code 153.5 (two percent fee limitation), 153.10 (one equity loan at a time), 153.85 and 153.86 (HELOC fees and maximum principal) (accessed October 22, 2026).
  • Senate Research Center, bill analysis of S.J.R. 60, 85th Legislature (2017): fee cap lowered from 3% to 2% and the four exclusions added, effective January 1, 2018.
  • U.S. Census Bureau, American Community Survey 2024 1-year, table DP04: Texas median value of owner-occupied homes $313,200.

Last reviewed October 22, 2026.

Questions about Texas home equity limits

How much equity can I borrow from my home in Texas?

A Texas home equity loan or HELOC plus all other debt on the homestead may not exceed 80% of its fair market value (Texas Constitution, Article XVI, Section 50(a)(6)(B)). Multiply the value by 0.8 and subtract what you owe. On a $313,200 home with $180,000 owed, that is $250,560 minus $180,000, or $70,560. Lenders may approve less based on your credit and income.

Does the 80% limit apply to a Texas HELOC?

Yes. Section 50(t)(5) applies it to the full credit limit, not just what you draw, using the balances of all other loans on the home on the day the line closes. The state's home equity rules (7 TAC 153.86) say the maximum is set at closing and does not change for the life of the line. Each draw must be at least $4,000, and fees may be charged only when the line is opened, never per draw.

What fees count toward the 2% cap in Texas?

Fees you are required to pay to originate, evaluate, maintain, record, insure or service the loan count, and together they may not exceed 2% of the original principal amount (Section 50(a)(6)(E)). Interest and bona fide discount points do not count. Neither do a third-party appraisal, a survey by a state registered or licensed surveyor, the state base premium for a mortgagee title policy with endorsements, or a title examination report that costs less than that base premium without endorsements.

Can I have two home equity loans in Texas?

No. Texas allows one home equity loan at a time, whatever the total owed (7 TAC 153.10), and a new one may not close within a year of the last one on the same home (Section 50(a)(6)(M)(iii)), except in some declared states of emergency. Other liens, such as the mortgage you used to buy the home, can stay in place, but they count toward the 80% limit.

How long does a Texas home equity loan take to close?

At least 12 days. A Texas home equity loan or HELOC may not close before the 12th day after the later of your application and the date the lender gives you the required Texas notice. You get the final itemized fees at least one business day before closing, closing happens at the office of a lender, attorney or title company, and you can cancel within 3 days after closing without penalty.

Do I have to give my email or phone number to see results?

No. This calculator runs in your browser and shows every result as you type. Nothing you enter is sent to LenderMatch. If you later want offers from lenders, the HELOC form is a separate step you choose to take.

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