Updated

HELOCs in Texas: how much you can borrow and the rules that protect you

Own a home in Texas and want cash without touching your current mortgage rate? A home equity line of credit can do that. Texas writes its home equity rules into the state constitution, so the limits, waiting periods and fee caps below apply to every lender. Here is what they mean for you, in plain English.

Most you can owe on your home, all loans combined
80%
Minimum wait from application to closing
12 days
To cancel after closing, no penalty
3 days
Cap on most lender fees
2%

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HELOC rates in Texas right now

Most HELOCs have a variable rate based on the prime rate plus a margin set by the lender. Your margin depends mostly on your credit and how much of your home's value you borrow.

In 2025, the median HELOC in Texas opened at 7.65%, and half opened between 6.89% and 8.88%, across 18,832 lines reported under federal HMDA data. The national median was 7.50%. Leaving out lines with a 3 to 12 month introductory rate, the Texas median was 8.15%. Home equity loans in Texas, which usually have a fixed rate, closed at a median of 8.00%. HELOC rates in every state.

Prime rate, unchanged since September 17, 2026 (Federal Reserve)
7.00%
Median Texas HELOC rate at opening, 2025 (HMDA)
7.65%
Average 30-year fixed mortgage rate, week of October 29, 2026 (Freddie Mac)
7.24%

The Federal Reserve raised rates on September 16, 2026, which moved prime to 7.00%. Its October 27 and 28 meeting is more recent than the prime rate data shown here, which runs through October 27, 2026. Its next meeting is December 8 and 9. With 30-year mortgage rates above 7%, a HELOC lets you borrow against your equity without refinancing a lower rate you already have.

How much can you borrow in Texas?

Texas limits all the debt on your home to 80% of its value. That includes your current mortgage and the new line of credit together. The limit is set on the day the HELOC closes and stays the same for the life of the line.

Home value ×80% −what you owe now =your most likely maximum line

Example
Home value (the Texas median for owner-occupied homes)
$313,200
80% of value
$250,560
Current mortgage balance
$180,000
Maximum line of credit
$70,560

Example only. Lenders set the final amount after an appraisal, and many approve less than the maximum based on credit and income.

Our Texas home equity calculator applies the 80% limit to your own numbers, tells you whether the amount you want fits, and shows the 2% fee cap in dollars.

Run the Texas home equity calculator

Texas home prices about doubled from 2014 to 2025

Texas House Price Index by year, 2014 to 2025Column chart. The index rises from 218.5 in 2014 to 445.1 in 2025, with the largest yearly gains in 2021 and 2022.0100200300400500Index (1991 = 100)2014: index 218.4520142182015: index 233.20, up 6.8% from 20142016: index 248.78, up 6.7% from 20152017: index 265.87, up 6.9% from 201620172018: index 281.45, up 5.9% from 20172019: index 294.26, up 4.6% from 20182020: index 313.21, up 6.4% from 201920202021: index 365.61, up 16.7% from 2020+16.7%2022: index 420.97, up 15.1% from 2021+15.1%2023: index 432.30, up 2.7% from 202220232024: index 442.64, up 2.4% from 20232025: index 445.06, up 0.5% from 20242025445 Texas House Price Index by year, 2014 to 2025Column chart. The index rises from 218.5 in 2014 to 445.1 in 2025, with the largest yearly gains in 2021 and 2022.0100200300400500Index (1991 = 100)2014: index 218.4520142182015: index 233.20, up 6.8% from 201420152016: index 248.78, up 6.7% from 201520162017: index 265.87, up 6.9% from 201620172018: index 281.45, up 5.9% from 201720182019: index 294.26, up 4.6% from 201820192020: index 313.21, up 6.4% from 201920202021: index 365.61, up 16.7% from 20202021+16.7%2022: index 420.97, up 15.1% from 20212022+15.1%2023: index 432.30, up 2.7% from 202220232024: index 442.64, up 2.4% from 202320242025: index 445.06, up 0.5% from 20242025445

On the FHFA House Price Index, Texas home prices rose 104% from 2014 to 2025, with the biggest jumps in 2021 (+16.7%) and 2022 (+15.1%). Growth has flattened since: prices were up 0.45% in the year to mid-2026. Owners who bought before 2021 have seen the biggest gains.

Source: FHFA House Price Index, Texas, purchase-only, through 2026 Q2.

Chart data as a table
Texas House Price Index, annual average (1991 = 100)
YearIndex (1991 = 100)
2014218.45
2015233.20
2016248.78
2017265.87
2018281.45
2019294.26
2020313.21
2021365.61
2022420.97
2023432.30
2024442.64
2025445.06

The Texas HELOC rules, in plain English

These come from Article XVI, Section 50 of the Texas Constitution and the official interpretations of the Texas Finance Commission. Every lender has to follow them.

Before you close

12-day wait.
You can't close until the 12th day after you apply or get the required Texas home equity notice, whichever comes later. These are calendar days.
Final costs one business day ahead.
You get an itemized list of every fee at least one business day before closing.
Closing happens at an office.
Only at the office of the lender, an attorney or a title company. Never at your kitchen table.
Everyone signs.
Every owner and every owner's spouse has to agree to the loan in writing.

Limits on the loan

80% combined limit.
Everything secured by your home, including the new line, can't top 80% of its value.
One at a time, one per year.
You can have only one home equity loan or line on your home at a time, and you can't open a new one within 12 months of the last one, even if you paid it off. The exception is a declared state of emergency.
2% fee cap.
Lender fees can't exceed 2% of the line amount. Interest and discount points you choose to pay to lower your rate don't count, and neither do the appraisal, survey, title insurance premium or title exam.
Homestead only.
The line can only be secured by the home you live in, nothing else. Farm and ranch homesteads have qualified since January 1, 2018.

Using the line

$4,000 minimum per draw.
Each time you take money out, it has to be at least $4,000.
No cards.
You can't draw with a credit card or debit card. You draw by asking the lender, by phone or online transfer, or with checks you specifically requested.
No fees per draw.
Fees are charged only once, when the line opens.
The lender can't change your terms.
Your agreement can't be changed by the lender on its own.
Interest-only is allowed while you draw.
During the draw period your payment can be just the interest. After it ends, payments become equal installments.

Your protections

3 days to cancel.
You and your spouse can cancel within 3 days after closing with no penalty or charge.
Pay it off anytime.
No prepayment penalty.
No personal liability.
The lender's only claim is against the home, not your other assets, unless the loan was obtained by fraud.
Court order required.
A Texas home equity lien can only be foreclosed with a court order.

Texas homeowners by the numbers

Median value of an owner-occupied Texas home
$313,200
U.S.: $360,600
Texas homeowners with no mortgage at all
44.5%
U.S.: 40.3%
Owner-occupied homes in Texas
7.1 million
Median yearly property tax paid in Texas
$4,108
U.S.: $3,211

Source: U.S. Census Bureau, American Community Survey 2024 1-year estimates.

One request, multiple Texas lenders

  1. Tell us about your home once.

    A short form about your home, what you owe and how much you'd like. About 2 minutes.

  2. Lenders compete for it.

    Participating lenders who lend in Texas see your request.

  3. You compare and choose.

    Pick the offer that fits, or none at all. It's free either way.

LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

See my Texas options

Frequently asked questions

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

All loans on your home combined can't exceed 80% of its value. Take your home's value, multiply by 0.8, and subtract what you owe. That's the most a lender can give you.

How long does it take to get a HELOC in Texas?

Texas requires at least 12 days between your application (or the required notice, if later) and closing. After closing you have 3 days to cancel if you change your mind.

Can I get a HELOC if I already have a home equity loan in Texas?

Not on top of it. Texas allows only one home equity loan or line on your home at a time, and a new one can't close within 12 months of the last one.

Can I get a HELOC on a farm or ranch in Texas?

Yes, if it is your homestead. Texas has allowed home equity loans on agricultural homesteads since January 1, 2018.

What fees can a Texas HELOC lender charge?

Lender fees are capped at 2% of the line amount. The appraisal, survey, title insurance premium and title exam don't count toward the cap. Fees are charged only when the line opens, never when you draw.

Can I pay off a Texas HELOC early?

Yes. Texas home equity loans can be paid off at any time with no prepayment penalty.

Does checking my options with LenderMatch affect my credit?

No. LenderMatch never pulls your credit. A lender you choose to work with may check it, with your permission.

Keep reading

See your payment while the line is open and what it becomes once repayment starts.

Estimate your HELOC payment

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Sources

  • Texas Constitution, Article XVI, Section 50 (statutes.capitol.texas.gov)
  • Texas Administrative Code, Title 7, Chapter 153, home equity interpretations
  • FHFA House Price Index, state data through 2026 Q2
  • U.S. Census Bureau, American Community Survey 2024
  • Federal Reserve H.15 release, October 27, 2026
  • Freddie Mac Primary Mortgage Market Survey, October 29, 2026
  • Federal Financial Institutions Examination Council, Home Mortgage Disclosure Act data, 2025 (HELOC and home equity loan rates at opening, LenderMatch analysis)

Last reviewed October 21, 2026. This page explains Texas law in general terms and isn't legal advice. LenderMatch is not a lender and does not make loans or credit decisions.