HELOC in texas, Primary Residence

7 Replies

Thanks @Sammy G.  Your statement seems to directly contradict goamplify.com if I understood it correctly:

https://www.goamplify.com/blog/homerenovations/texas-home-equity-loan-guidelines.aspx

Home Equity Loan Application & Loan Guidelines

Some Texas laws regarding home equity loan procurement include:

  • Restrictions on mortgage debt: Borrowers can't owe more than 80 percent of the market value of their home on their mortgage and home equity loans combined. That means if you already have a $40,000 mortgage against a home worth $80,000, the most you can borrow is $24,000. If your mortgage balance is $65,000, a home equity loan is ruled out because the balance exceeds 80 percent of market value. As equity rises, however, allowable loan amounts rise; the system especially works in your favor when the value of your home has significantly risen since your mortgage was issued.

If your home can s worth 100k and you still owe 80k, then you cannot get a Heloc. I’m in Texas as well. You can borrow up to 80% of your homes value minus whatever loans you have on it. It’s in the Texas constitution. You said you have 20% equity, so I assume you still have 80% on a mortgage. I hope this helps.

@Sunile Manjee : I just got HELOC on primary residence. As Jesse P mentioned, The max HELOC you can get is 80% of current appraised value - current mortgage balance. So in your case what i understand is that you have 20% equity. Depending upon your current market value you may get $0 ( if home market value unchanged from original loan date) to $ few thousands depend upon appreciation on you r home. Hope it helps!