Texas home equity loans are governed by the state constitution. Clear2 Mortgage helps Texas homeowners navigate the rules — including the 80% CLTV cap and 12-day waiting period — and access their equity with confidence.
You must retain at least 20% equity in your home after the HELOC. The combined balance of your mortgage plus the HELOC cannot exceed 80% of your home's appraised value.
Texas requires a mandatory 12-day waiting period from application before you can close. This is a constitutional requirement and cannot be waived by any lender.
Your HELOC must close at the office of the lender, a title company, or an attorney. You cannot close at your home or at any other location.
You can only have one home equity loan or HELOC at a time on the same Texas property. A 3-business-day right of rescission applies after closing.
The Clear2 HELOC is powered by Figure, one of the largest home equity lenders in the country. Texas has unique constitutional requirements for home equity lending — we help you navigate them so you know exactly what to expect before you apply.
Answer a few questions and link your accounts. A soft credit pull shows your rate in as few as 5 minutes without affecting your credit score. Texas's 80% CLTV cap will be applied to determine your maximum line size.
Texas requires a mandatory 12-day waiting period from the date certain disclosures are provided before you can close. No lender can waive this. Once the wait clears, you close at a title company, attorney's office, or the lender's office — not at your home.
Your full approved amount is funded at closing at a fixed rate. After a 3-business-day right of rescission, funds are disbursed. As you pay down the balance, you can redraw those funds — giving you ongoing access to your equity without a new application. Redraws carry a variable rate tied to Prime at the time of the draw.
Texas Section 50(a)(6) applies to home equity loans and HELOCs secured by your homestead. A cash-out refinance replaces your first mortgage and is subject to the same 80% CLTV rule in Texas. Understanding which product fits depends on your rate, equity, and how you want to access funds.
The Clear2 HELOC through Figure has straightforward eligibility. Texas adds constitutional requirements on top of the standard ones — your loan officer will walk you through each one before you start an application.
Your initial draw rate is fixed at approval based on your credit score, home equity, and line amount. It does not move with the market after you close. Because Texas caps CLTV at 80%, your line size may be smaller than in other states — but your rate structure and terms are the same.
Your exact rate is shown during the online application after a soft credit pull. Rates vary by state, CLTV, and line amount. Rates are subject to change without notice. Texas CLTV is capped at 80% by state law. Additional draws after your initial funding carry a variable rate tied to Prime Rate at the time of the draw.
The full line amount is funded at close, so you have access to your equity immediately. Here are the most common reasons Texas homeowners use it — within the 80% CLTV limit.
Consolidating high-interest credit card or personal loan debt into a fixed-rate HELOC at a lower rate can save thousands per year in interest. One payment replaces several, and your rate is fixed so the math stays predictable. Your home secures the loan, so calculate carefully before proceeding.
Kitchen remodels, bathroom upgrades, or storm-hardening improvements — with the full line available at close, you pay contractors without waiting for draw approvals. As you pay down the balance, the redraw feature lets you access remaining equity for future phases of the project.
Solar installations average $20,000–$35,000. An accessory dwelling unit can run significantly more. Both can increase property value while the HELOC funds the work. The fixed rate keeps monthly costs predictable from day one.
Opening a HELOC on your current home before listing it gives you a down payment source for your next purchase without waiting for the sale to close. Pay off the HELOC when your current home sells. Remember: Texas allows only one home equity loan at a time per property.
Clear2 Mortgage holds a license in Texas and offers HELOC products to homeowners across the state. We are also licensed in 21 additional states. Your loan officer will confirm eligibility for your specific location, property type, and help you navigate Texas's Section 50(a)(6) requirements.
Questions about Texas Section 50(a)(6) or coverage in your area? Contact a Clear2 loan officer and we will confirm your eligibility and walk you through the process before you start an application.
Five-star reviews from Clear2 clients on Google.
"We used a HELOC through Clear2 to fund our home renovation. The process was straightforward and our loan officer kept us informed every step of the way. The draw period structure worked perfectly for paying contractors as work was completed."
"I wanted to consolidate some credit card debt without touching my mortgage rate. Clear2 found me a HELOC at a rate that cut my monthly interest payments nearly in half. The approval was faster than I expected and there was no application fee."
"Clear2 made the HELOC process easy to understand. My loan officer walked me through the rate structure and repayment timeline before I ever signed anything. I felt confident I was making the right call for my family's finances."
What are the rules for a HELOC in Texas?
Texas home equity loans are governed by Texas Constitution Section 50(a)(6). Key rules: maximum 80% CLTV, mandatory 12-day waiting period before closing, closing must occur at a title company, attorney's office, or lender's office, 3-business-day right of rescission after closing, and only one home equity loan per property at a time.
What is the maximum HELOC amount in Texas?
Texas caps combined loan-to-value at 80%. If your home is worth $310,000 and you owe $160,000, the maximum combined balance is $248,000 ($310,000 × 80%), leaving a maximum HELOC of $88,000. This cap applies regardless of your credit score.
Why does Texas limit HELOCs to 80% CLTV?
Texas has strong constitutional protections for homesteads. Section 50(a)(6) was added in 1997 to allow home equity lending while preserving those protections. The 80% cap, waiting period, and closing location requirements are all constitutional guardrails designed to protect Texas homeowners.
Is HELOC interest tax deductible in Texas?
HELOC interest may be deductible if the funds are used to buy, build, or substantially improve the home securing the line. Under the Tax Cuts and Jobs Act of 2017, interest on home equity debt used for other purposes is not deductible. Consult a tax advisor for guidance specific to your situation.
How long does it take to get a Texas HELOC?
Texas requires a mandatory 12-day waiting period before closing — no lender can waive this. Most Texas HELOC approvals take 3 to 5 weeks from application to funding when you account for the waiting period and property valuation. Plan accordingly if you have a time-sensitive need.
Where does a Texas HELOC have to close?
Texas Section 50(a)(6) requires closing at the office of the lender, a title company, or an attorney. You cannot close at your home or at any other location. This is a constitutional requirement that applies to all Texas home equity loans regardless of lender.
Can I have more than one HELOC in Texas?
No. Texas allows only one home equity loan or HELOC at a time on the same property. You must pay off and close your existing home equity line before opening a new one. This applies per property — you cannot have two simultaneous home equity loans secured by the same Texas homestead.
Can I get a HELOC on a rental property in Texas?
Texas Section 50(a)(6) applies to homestead properties. Non-homestead investment properties in Texas may qualify for a home equity loan under different rules, but availability and terms vary significantly by lender. Ask your Clear2 loan officer about current options for investment property equity lines in Texas.
No application fee. Check your eligibility in minutes. A Clear2 loan officer will help you navigate Texas's Section 50(a)(6) requirements from start to close.
Clear2 Mortgage, LLC. NMLS #1911663. Licensed Mortgage Broker. 2600 W Big Beaver Rd, Suite 100, Troy, MI 48084. Equal Housing Lender. This is not a commitment to lend. All loans subject to credit approval, appraisal, and underwriting guidelines. Texas home equity loans are subject to Texas Constitution Section 50(a)(6) requirements including 80% maximum CLTV, 12-day waiting period, and closing location requirements. HELOCs are variable rate products and rates are subject to change. Your home is collateral. Rates and terms subject to change without notice. Licensed in Texas.
