Texas home equity lending is uniquely regulated by strict constitutional protections. Home equity loans and HELOCs combined cannot exceed 80% of a property's market value, ensuring at least 20% equity remains. Borrowers face a 12-day waiting period before closing, are limited to one home equity loan per year, and fees are capped at 2%. Loans are non-recourse, limiting lender recovery to the home itself. These rules promote cautious borrowing and protect homeowners.
Continue to full article