Home Equity Line of Credit
A home equity line of credit (HELOC) lets qualified homeowners tap their home equity as a revolving line of credit for renovations, debt consolidation or other goals. HomyLoan, a licensed mortgage broker, helps you compare HELOC options, subject to credit approval.
- Revolving line of credit
- Borrow as you need it
- Texas 80% combined LTV limit
The basics
What Is A HELOC?
A home equity line of credit (HELOC) is a revolving line of credit secured by your home equity, usually as a second mortgage. Your credit line depends on your home equity, credit and income, and in Texas your HELOC plus all other loans on the home generally can't exceed 80% of its value. HELOCs usually carry a variable rate, and interest-only payments may be available during the draw period, giving you flexible funding for renovations, debt consolidation, education or other goals.
- Type
- Revolving line of credit
- Rate
- Usually variable
- Texas limit
- 80% combined LTV
How it works
Your HELOC in four steps
From checking your equity to your first draw, one licensed loan officer guides you through each step.
- 01
Check your equity
Estimate your home's value and what you owe. In Texas, your HELOC plus other loans on the home generally can't exceed 80% of its value.
- 02
Apply
Share your income, credit and mortgage details. Texas rules generally require at least 12 days between your application (and the required home equity notice) and closing.
- 03
Appraisal and underwriting
An appraisal confirms your home's value and the lender reviews your file. Your loan officer keeps you updated along the way.
- 04
Close and draw as needed
After closing and the 3-day right to cancel, you can draw on the line during the draw period. In Texas, each advance must generally be at least $4,000.
HELOC Benefits
HELOC Programs to Fit Your Needs
HomyLoan is a licensed mortgage broker and can help you compare home equity line of credit programs. Your credit line depends on your home equity, credit and combined loan-to-value (LTV). Rates are variable and may change.
Credit Line
Based on your home equity, credit and income, subject to credit approval
Draw Period
Often 10 years to borrow, repay and borrow again as needed
Repayment Period
Interest-only payments may be available during the draw period, followed by principal and interest payments over the repayment period
Variable Rate
HELOC rates are usually variable and can change over the life of the line, within the limits in your loan agreement
Texas Equity Limit
Your HELOC plus all other loans on the home generally can't exceed 80% of its fair market value (Section 50(t))
Property Types
Eligible homes may include 1–4 unit homes, PUDs, condos and townhouses used as your homestead
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HELOC FAQs
A home equity line of credit (HELOC) is a revolving credit line secured by your home. You can borrow, repay and borrow again during the draw period, then repay the balance over the repayment period.
In Texas, your HELOC plus all other loans on your homestead generally can't exceed 80% of its fair market value. Your actual line also depends on your credit, income and the lender's guidelines.
Usually variable. HELOC rates typically change with an index over the life of the line, within the limits in your loan agreement.
Texas rules generally require at least 12 days between your application and required home equity notice and closing. Appraisal and underwriting timelines vary by lender.
It depends. A HELOC lets you keep your current first mortgage and borrow only what you need, while a cash-out refinance replaces your mortgage with a new, larger one. A loan officer can compare both.
Texas generally allows only one home equity loan on your homestead in a 12-month period. Your loan officer can check how this applies to your situation.