Home Equity Loans

The Texas Home Equity refinance loan allows you to refinance your current mortgage and cash-out the equity in your home up to 80% of the value of your home. Your homes value will be based on an appraisal of your property.

You can payoff your current mortgage & closing costs and receive cash from the loan. In some cases it may be necessary to have the title company pay off some of your debts with the cash when the loan funds, so you qualify for the loan.

Conforming Guidelines Summary
Occupancy Unit Max. LTV Maximum
Loan
Amount
Cash-out
Limit
Minimum Loan
Amount
Primary Only 1 80% $417,000 $417,000 $100,000
Notes:
  • Texas law states that once you have a home equity loan it can only be refinanced with another home equity loan. Even if you aren't taking any more cash out of your home.
  • A home equity loan cannot be refinanced for 12 months from the date of closing.
What you need to do for Loan Approval
  • Submit your loan application online.
  • Review, sign and return your loan papers and documentation to us. (Papers need to be returned within 72 hours of receipt of papers)
  • Your rate can be locked when we have completed an acceptable appraisal.
  • Go to the title company to close your loan.
  • You can pick up your check at the title company after the 3-day Right of Rescission Icon - Opens in New Window period.

    Click here Icon - Opens in New Window to see a general list of the documentation you will need to send to us with your loan papers.

HE Guidelines

Conforming Texas Home Equity Loans

Conforming loans are limited to $417,000 and must be approved using Fannie Mae's automated underwriting system. Below is a general list of guidelines for our conforming Texas Home Equity loans. If you don't find the information you are looking for, please email us your questions for further help.

  • Closing costs - Limited to 3% of the new loan amount by state law. This does not include escrows. On smaller loan amounts this may require us to increase your interest rate to cover closing costs in excess of the 3% limit.
  • Credit Scores - Our automated underwriting systems will determine if credit scores is sufficient for approval, however, credit scores below 740 now require a price adjustment to the rate. Minimum credit score allowed is 640.

The following adjustments are to the points. As a rule of thumb, 0.375% in points equals about 0.125% in the rate. So if you have to add 0.75% pt. your rate will go up about 0.25%, i.e., 7.0% to 7.25%.

Credit Score Adjustments to Points
All Loans with terms > 15 years (1)
LTV's
(Loan to Value)
Credit Scores
(Lowest middle score of 3 or lower score of 2)
640 - 659 660 - 679 680 - 699 700 -719 720 - 739 >739
< 60% 0.50% 0% 0% -0.25% -0.25% -0.25%
60.01 - 70 1.25% 1.00% 0.50% 0.50% 0% 0%
70.01 - 75 2.625% 2.125% 1.25% 0.75% 0.25% 0%
75.01 - 80 3.00% 2.625% 1.75% 1.00% 0.50% 0.25%
1) Minimum credit score is now 640.
Additional Credit Score Adjustments to Points
Texas Cash-out Loans - Primary Residence
LTV's
(Loan to Value)
Credit Scores
(Lowest middle score of 3 or lower score of 2)
640-659 660-679 680-699 700-739 >739
< 60% 0.25% 0.25% 0% 0% 0%
60.01 - 75 1.25% 0.75% 0.75% 0.625% 0.25%
75.01 - 80 2.25% 1.50% 1.375% 0.75% 0.50%
Minimum credit score is 640.
  • Interest Rates - Home Equity rates run about 0.25% higher than regular rate/term refinance rates. See Rate Table below.
  • Maximum LTV - Cash out the equity in your home up to an 80% LTV.
  • Minimum Loan Amount - $100,000.
  • Property Size - Strictly limited to properties with 10 acres or less.
  • Property Types - Texas primary residence only. Must be registered as your homestead. 1 unit, Single Family Homes, townhouses and condominiums. No Doublewides or mobile homes.
  • Bankruptcy or Foreclosure

    Chapter 7
    You must wait 4 years from the discharge date.

    Chapter 13
    2 years from the discharge date or 4 years from the dismissal date..

    Foreclosure
    You must wait 4 years from the date of the foreclosure.

    Short Sale
    4 years from the date. of the sale.

NOTE: After a bankruptcy be sure to check your credit report for errors and correct inaccurate information. This can make a big difference in your credit scores and loan approval.

Note:
Guidelines subject to change without notice. Additional guidelines and restrictions may apply. Submit your loan application for approval.

It's real easy to pre-qualify. An analysis and estimate will be emailed to you. Just click here to get started.

Conforming Home Equity(cash-out)
Refinance Loan Rates
Rates based on $200,000 Loans
30 Year Fixed Loans
30 day lock.
15 Year Fixed Loans
30 day lock.
Rate Points APR Rate Points APR
4.125% 0.614% 4.383% 3.250% 0.848% 3.697%
4.375% -0.797% 4.637% 3.500% -0.418% 3.950%
4.625% -2.125% 4.883% 3.750% -1.532% 4.203%
Adjustments:
Maximum LTV on Texas Home Equity Loans = 80%.
SFR, 1 unit, 10 acres or less.
Minimum loan amount - $85,000, Max $417,000
Adjustments:
See Credit Score Adjustments below.

Credit Score Adjustments to Points
All Loans with terms > 15 years
LTV's
(Loan to Value)
Credit Scores
(Lowest middle score of 3 or lower score of 2)
640 - 659 660 - 679 680 - 699 700 -719 720 - 739 >739
< 60% 0.50% 0% 0% -0.25% -0.25% -0.25%
60.01 - 70 1.25% 1.00% 0.50% 0.50% 0% 0%
70.01 - 75 2.625% 2.125% 1.25% 0.75% 0.25% 0%
75.01 - 80 3.00% 2.625% 1.75% 1.00% 0.50% 0.25%
80.01 - 85 n/a n/a n/a 1.00% 0.50% 0.25%
85.01 - 97 n/a n/a n/a 1.00% 0.50% 0.25%
Minimum credit score is 640.

Additional Credit Score Adjustments to Points
Cash-out Loans for Investment Properties & Second Homes
(Primary Residence cash-out - see Home Equity Loans below)
LTV's
(Loan to Value)
Credit Scores
(Lowest middle score of 3 or lower score of 2)
640-659 660-679 680-699 700-739 >739
< 60% 0.25% 0.25% 0% 0% 0%
60.01 - 75 1.25% 0.75% 0.75% 0.625% 0.25%
75.01 - 80 2.25% 1.50% 1.375% 0.75% 0.50%
Minimum credit score is 640.

Additional adjustments & restrictions may apply <> Contact us for an analysis and estimate
Notes for rates

Rates are subject to change without notice until locked in.
Rates on this Page Last Updated:
09/17/14 10.30 AM

Refinance Loan Application - This is a complete loan application and purchase questionnaire. It should take from 15 to 30 minutes to complete.
  • Click here Icon - Opens in New Window for a general list of information needed to complete your application.
  • After reviewing your application and credit report, your loan will be submitted for Automated Underwriting prior to calling you to discuss your application unless additional information is needed from you.
  • The results will be emailed to you with an estimate for your review. Rates are subject to change until locked in. Please call our office for details about locking your rate.
  • Your complete loan application and disclosure forms will be overnighted to you for your review and signatures, along with copies for your records. A written list of the required documents needed and a return overnight envelope will also be included for you to return the documents to us.
  • The only upfront costs to you are the credit report/AUS fee($20 to $60) & the appraisal fee($395 to $430). Click here Icon - Opens in New Window for more details on the loan process.

Pre-Qualify

  • This is a short form that only takes a few minutes to complete.
  • It will give us the info we need to pre-qualify you according to your income, debts and funds available for down payment and closing costs.
  • The results will be emailed to you with an estimate for your review.
  • The Pre-Qualify form is primarily designed for borrowers with good credit since NO credit report will be pulled with this prequalification.

Email or call us if you need additional information.

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3-day Right of Recession

Required on Refinance loans only.
Texas homestead law provides for any borrower refinancing their homestead in Texas to have a grace period of 3 business days from the closing date to re-consider the terms of the refinance before the loan becomes final. Details Icon - Opens in New Window