Your HELOC question

Can I get a HELOC on a Texas home?

Texas homestead borrowing has specific limits and procedures.

The short answer

Texas permits home-equity lines, but covered homestead transactions follow special constitutional rules. Article XVI, Section 50 limits the line together with other home-secured debt to 80% of the property’s value when the line is established. It also requires advances of at least $4,000. These are legal constraints, not an approval or a promise that a lender will offer the maximum.

Check my situation

What matters in this situation

  • Whether the property and transaction are subject to Texas homestead equity rules.
  • Other home-secured balances and the lender’s valuation.
  • Prior home-equity borrowing, refinance timing and required notices.

What to gather

  • Current lien statements and recent home-equity closing documents.
  • Property and ownership information requested by the lender or closing provider.

A worked example

For an illustrative $500,000 home with $300,000 of retained secured debt, 80% is $400,000, leaving $100,000 before lender-specific limits and costs. The arithmetic does not establish eligibility.

Illustrative only. The numbers do not represent a loan offer.

What could change the answer

  • A national calculator set to a higher percentage may be unsuitable for this transaction.
  • Small frequent draws may not work as expected because of the minimum advance rule.

Other routes to consider

  • Ask a Texas-qualified lender to compare a line with a lump-sum home-equity loan.
  • Review a smaller financing amount or project scope if the combined borrowing limit leaves a gap.

Sources & scope

Source-based education checked 2026-10-19. Not a lender approval or a claim that Shawn has reviewed this article. Confirm actual program and state availability with a licensed professional.

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