HELOCs in Texas

Texas law caps borrowing at 80% of your home's value (CLTV), ensuring you maintain 20% equity.

Calculating your CLTV: A home worth $500,000 with a $300,000 mortgage = up to $100,000 available ($500,000 × 80% - $300,000).

To strengthen your position: Build equity through extra principal payments, appreciation, or renovations that increase property value.

Your broader credit profile — not just your score — plays a role in both approval and pricing. Lenders typically look at:

• Credit score: 740+ for best rates; Figure accepts 600+ for primary residences
• Payment history: A track record of on-time payments signals reliability
• Credit utilization: Keeping balances under 30% of available limits shows responsible credit use
• Credit mix: Variety of credit types may strengthen your profile
  
  To strengthen your position: Pay bills on time for six to 12 months, reduce card balances below 30%, and avoid new accounts before applying.

Lenders make sure your income can handle your current debt obligations and the added HELOC payment.

To strengthen your position: Gather W-2s, tax returns, and pay stubs. Self-employed borrowers may qualify using tax returns or bank statements.

Your home must be your primary residence in Texas. Investment properties, second homes, and rentals don't qualify under Texas law.

To strengthen your position: Ensure property is well-maintained; condition reports or appraisals may be required.

Figure requires maximum DTI of 45%, though some borrowers with strong credit may qualify up to 50%.

To strengthen your position: Pay down debts, increase your income, or consider a smaller HELOC amount, which results in a lower monthly payment.

Yes, though under unique constitutional rules. Texas was the last state to permit home equity lending (1998). Requirements include 80% maximum LTV, first lien position, and 12-day disclosure waiting period — protections designed to prevent overborrowing.

Rates vary by credit score, LTV, DTI, and lender. With Figure, APRs range from 6.30% to 15.30% depending on credit profile, loan term, and state.^{1: Navigates to numbered disclaimer}

Payments depend on balance, rate, and loan phase. Figure's fixed-rate structure provides predictable payments including principal and interest from day one^{6: Navigates to numbered disclaimer 7: Navigates to numbered disclaimer}. Use Figure's HELOC calculator to estimate payments.

For loans under $400,000, Figure typically uses an Automated Valuation Model instead of in-person appraisal, speeding approvals by weeks. Loans over $400,000 may require appraisal.^{5: Navigates to numbered disclaimer}

With Figure: approval in as few as 5 minutes, fast funding^{5: Navigates to numbered disclaimer}. Even with Texas's 12-day disclosure period, this is significantly faster than traditional HELOCs, which typically take two to four weeks from application to funding, or cash-out refinances which can take 30 to 45 days or longer. Exact timing varies by situation and county requirements.

Interest may be deductible if funds improve your home (per the Tax Cuts and Jobs Act  Opens in a new window.). Interest for other uses typically isn't deductible. Texas has no state income tax, so federal treatment is primary. Consult a tax professional for your situation.

Figure’s one-time origination fee, up to 4.99%^{6: Navigates to numbered disclaimer 7: Navigates to numbered disclaimer}, is deducted at closing. You may also pay recording fees and other closing costs. Texas caps certain lender fees at 2% (excluding appraisal, survey, title). No annual fees, draw fees, or prepayment penalties.