Does anyone know if you're prohibited from getting a HELOC in Tx

[Jeremy Keeler]

I was told by a lender via email that Federal law prohibits me from getting a HELOC on my residence if said residence has no mortgage. She was wanting to get me into a Texas A6 cash out style loan. I've searched high and low online, but cannot find the answer to my question. My next step will be actually calling a bank that offers HELOCs and asking them. At first I thought she might be lying but the more I think about it I find that new finance laws may be written in a way that "protects" home owners from losing their homes with a small draw on a HELOC.

Any wisdom on this is appreciated. Thanks!

P.S. That subject title is a bit misleading but it wouldn't let me enter the entire question. I know you can get HELOCs in Texas, but can you get them if the home is paid for?