Texas Home Equity Loans

Understanding Home Equity Loans in Texas

Texas law has some of the strictest—but most protective—rules around home equity lending. We know the landscape and help you navigate it with confidence.

Key Features of a Texas HELOC from Herring Bank

• Borrow up to 75% of your home’s value (combined loan-to-value)

• Primary residence only (no second homes or investment properties)

• Owner-occupied SFR or PUD properties (no condos or manufactured homes)

• Minimum FICO score: 660

• Debt-to-Income (DTI) maximum: 40%

• Variable interest rate based on WSJ Prime + 

• Draw Period: 10 years interest-only

• Repayment Period: 10 years fully amortizing P&I

• No prepayment penalties

• Minimum credit line: $25,000

• Maximum credit line: $150,000

• Minimum draw amount: $4,000

• Draws must be deposited into a Herring Bank account

• Full appraisal required (fee paid by borrower before appraisal is ordered)

• Available in Texas only

Your home’s equity is powerful—don’t let it sit idle. A HELOC gives you access to that cash when you need it. Get started with a Home Equity Loan.

Put Your Equity to Work

Use your HELOC for:

• Home renovations
• Paying off high-interest debt
• Emergency expenses
• College tuition
• Starting or funding a business

With a HELOC, your home works for you. Only pay interest on what you use—no more, no less.

Why Choose a HELOC?

A Home Equity Line of Credit (HELOC) is a revolving line of credit secured by your home. It works similarly to a credit card—you borrow only what you need, when you need it, and pay interest only on what you use during the draw period.

Use your HELOC to:

• Renovate or remodel your home

• Consolidate high-interest debt

• Cover emergency expenses

• Pay for college or tuition

• Start or fund a business

Understanding Home Equity in Texas

Texas law has some of the strictest—but most protective—rules around home equity lending. We know the landscape and help you navigate it with confidence.

Key Benefits of a Texas HELOC:

• Borrow up to 80% of your home’s value
• No personal liability (non-recourse)
• Judicial foreclosure adds borrower protections
• Transparent fees—capped at just 3% of the loan amount
• One transaction per year keeps things simple

Your home’s equity is powerful—don’t let it sit idle. A HELOC gives you access to that cash when you need it.

How Texas HELOCs Work: 5 Steps to Get Started

1. 1. Equity Assessment: Confirm minimum 25% equity and 12 months of home ownership

   2. Compliance Check: Confirm Texas homestead and prior loan status

   3. Title Review: Clear title and lien position confirmed

   4. In-Person Closing: Texas law requires face-to-face notarization

   5. Funding: After 12-day disclosure period and 3-day right of rescission, funds are accessible

Apply today and unlock the cash tied up in your home—on your terms.

Why Herring Bank for Your HELOC?

• Texas-based and locally rooted
• Fast approvals and flexible terms
• Personalized support from real experts
• No hidden fees
• Competitive Rates

We know Texas HELOCs better than anyone—and we’re ready to help you get started.

Frequently Asked Questions

Q: Can I get a HELOC on a rental or vacation home?
A: No. Herring Bank HELOCs are only available on owner-occupied primary residences in Texas.

Q: How much can I borrow?
A: Up to 75% of your home’s value (CLTV), minus existing liens.

Q: What credit score do I need?
A: A FICO score of at least 660 is required.

Q: How long does funding take?
A: Typically 2 weeks from application to funding, subject to the 12-day disclosure and 3-day rescission period.

Q: Are there closing costs?
A: Yes, but most are capped under Texas law. You’ll receive a full estimate before closing.

Q: Can I pay off my HELOC early?
A: Yes—there is no prepayment penalty.