HELOC on Rental Property in Texas

9 Replies

Hi All,

I'm hoping to get a definitive answer regarding HELOC on rental properties in Texas. I've gotten different answers from different people and even banks. I have several single family rental properties in Texas and am looking to get a HELOC on one of the properties. I own it free and clear. It's not owned inside an LLC. Would prefer a HELOC instead of a cash out refi due to the costs of the refi. I've heard various things including that it isn't even possible to get a HELOC on an investment property in Texas due to some sort of regulations. So I'm wondering if it possible to get a HELOC on an investment property in Texas, and if so what are the limits (75%?), and if anyone can give recommendations on a lander?

I've gotten a HELOC in Texas with Chase bank and it had to be on my primary residence where I lived. It could not be on an investment property. I haven't heard of a HELOC on an investment property. Hope this helps.

Most local banks will do a line of credit using that property to secure the credit. Now that I say that I don't know the lending requirements in TX but couldn't imagine that they would be too tremendously different than other places.

Eric, I am just wondering whether you eventually got a HELOC on one of your investment properties? I have some rental properties in DFW area and want to do the same. But after many calls, I have yet to find a bank/credit union or anyone that can do it.

Hey Henry,

My understanding from having talked with several banks and credit unions is that a line of credit is not available on investment properties in Texas due to regulations.  You can get one on your personal residence but not investment properties in Texas.  I wound up just get a home equity loan at 80% on the property.  

Hey Eric, thanks for the reply and useful information. That explains why some lender like Union Bank offers HELOC on rental properties in CA and WA but not TX, though it does business in all three states. If you don't mind me asking, did you consider cash-out refinance to take the equity out, as opposed to home equity loan? What are the pros and cons of each option? Thanks again.


Eric, since you got a cash-out refi, do you find it difficult paying for that loan? I know you owned the house out right, but does that bring your cash flow to a minimum? We're going through something similiar. We own one house out right but need some cash on another potential investment but bank won't lend us anymore. I'd hate to get a loan on that house since all the rent is profit. Thx