Texas mortgage help, including cash-out and home equity rules.
Marketline Mortgage, LLC (NMLS #1842) is licensed as a Texas mortgage company. We help Texas buyers and homeowners with purchase loans, refinances, and, when it fits, cash-out financing, with the same family service we provide from our Scottsdale office. Applications, disclosures, and document signing are handled online and by phone. Texas residents can also read our required SML consumer notice at /texas-brokers-sml-consumer-notice.
A purchase loan in Texas follows familiar conventional, FHA, VA, jumbo, and (where the property and income qualify) USDA paths. Cash-out and many other loans that pull equity from a Texas homestead are different. Those loans are generally governed by Article XVI, Section 50(a)(6) of the Texas Constitution, and the rules are stricter than in most other states.
Among the requirements that most often affect timing and loan size:
- The new loan amount, plus the balances of all other liens of record against the homestead, cannot exceed 80 percent of the home's fair market value on the day the loan is made.
- The loan generally cannot close until 12 days after you apply or after you receive the required consumer disclosure, whichever is later.
- Closing may take place only at the office of the lender, a title company, or an attorney — not at the home.
- Fees necessary to originate, evaluate, maintain, record, insure, or service the loan generally cannot exceed 2 percent of the original principal, with specified exclusions such as a third-party appraisal, a survey by a licensed surveyor, and certain title insurance or title-examination charges.
- As a rule, only one Section 50(a)(6) loan may be secured by the home at a time, and a new loan of the same type usually cannot close within a year of the prior one, except in limited emergency circumstances.
- These loans are typically non-recourse (except in cases of actual fraud) and may be foreclosed only by court order. Each owner and each owner's spouse must consent.
A rate-and-term refinance of a purchase-money loan is often not a 50(a)(6) loan; a cash-out refinance usually is. We will tell you which rules apply to your situation and build the extra time into your closing calendar.
For 2026, the FHFA baseline conforming limit for a one-unit home is $832,750, with higher limits in designated high-cost counties, up to a ceiling of $1,249,125. We will confirm your county's current limit when we review the property.
Questions we hear often
What is different about cash-out or home equity loans in Texas?
Many loans that pull equity from a Texas homestead are governed by Article XVI, Section 50(a)(6) of the Texas Constitution. Those rules affect loan size, timing, fees, and where you can close. A rate-and-term refinance of a purchase-money loan is often not a 50(a)(6) loan; a cash-out refinance usually is. We will tell you which rules apply to your situation.
How long does a Texas home equity loan take to close?
A Section 50(a)(6) loan generally cannot close until 12 days after you apply or after you receive the required consumer disclosure, whichever is later. We build that waiting period into the calendar at the start.
Where can a Texas home equity loan close?
Closing may take place only at the office of the lender, a title company, or an attorney — not at the home.
Where can I read the Texas SML consumer notice?
The required notice is posted at /texas-brokers-sml-consumer-notice.
How do I get started?
Request a consultation at /contact-us, or call 1-877-967-8286. Applications, disclosures, and document signing are handled online and by phone from our Scottsdale office.
Get started
Request a consultation at /contact-us, or call 1-877-967-8286.
Licensing
Marketline Mortgage, LLC | NMLS #1842 | Arizona Mortgage Broker License MB-1049666
Licensed in Arizona, Florida, Texas, and Idaho. California operations are conducted through Marketline, Inc., NMLS #396643, CA DRE Corporate License #01893968.
Taum Hemmingsen, Mortgage Broker, NMLS #51267
Equal Housing Opportunity
Verify licenses at NMLS Consumer Access: https://www.nmlsconsumeraccess.org/
Texas residents: SML Consumer Notice — /texas-brokers-sml-consumer-notice
Texas mortgage help, including cash-out and home equity rules.
Marketline Mortgage, LLC (NMLS #1842) is licensed as a Texas mortgage company. We help Texas buyers and homeowners with purchase loans, refinances, and, when it fits, cash-out financing, with the same family service we provide from our Scottsdale office. Applications, disclosures, and document signing are handled online and by phone. Texas residents can also read our required SML consumer notice at /texas-brokers-sml-consumer-notice.
A purchase loan in Texas follows familiar conventional, FHA, VA, jumbo, and (where the property and income qualify) USDA paths. Cash-out and many other loans that pull equity from a Texas homestead are different. Those loans are generally governed by Article XVI, Section 50(a)(6) of the Texas Constitution, and the rules are stricter than in most other states.
Among the requirements that most often affect timing and loan size:
- The new loan amount, plus the balances of all other liens of record against the homestead, cannot exceed 80 percent of the home's fair market value on the day the loan is made.
- The loan generally cannot close until 12 days after you apply or after you receive the required consumer disclosure, whichever is later.
- Closing may take place only at the office of the lender, a title company, or an attorney — not at the home.
- Fees necessary to originate, evaluate, maintain, record, insure, or service the loan generally cannot exceed 2 percent of the original principal, with specified exclusions such as a third-party appraisal, a survey by a licensed surveyor, and certain title insurance or title-examination charges.
- As a rule, only one Section 50(a)(6) loan may be secured by the home at a time, and a new loan of the same type usually cannot close within a year of the prior one, except in limited emergency circumstances.
- These loans are typically non-recourse (except in cases of actual fraud) and may be foreclosed only by court order. Each owner and each owner's spouse must consent.
A rate-and-term refinance of a purchase-money loan is often not a 50(a)(6) loan; a cash-out refinance usually is. We will tell you which rules apply to your situation and build the extra time into your closing calendar.
For 2026, the FHFA baseline conforming limit for a one-unit home is $832,750, with higher limits in designated high-cost counties, up to a ceiling of $1,249,125. We will confirm your county's current limit when we review the property.
Questions we hear often
What is different about cash-out or home equity loans in Texas?
Many loans that pull equity from a Texas homestead are governed by Article XVI, Section 50(a)(6) of the Texas Constitution. Those rules affect loan size, timing, fees, and where you can close. A rate-and-term refinance of a purchase-money loan is often not a 50(a)(6) loan; a cash-out refinance usually is. We will tell you which rules apply to your situation.
How long does a Texas home equity loan take to close?
A Section 50(a)(6) loan generally cannot close until 12 days after you apply or after you receive the required consumer disclosure, whichever is later. We build that waiting period into the calendar at the start.
Where can a Texas home equity loan close?
Closing may take place only at the office of the lender, a title company, or an attorney — not at the home.
Where can I read the Texas SML consumer notice?
The required notice is posted at /texas-brokers-sml-consumer-notice.
How do I get started?
Request a consultation at /contact-us, or call 1-877-967-8286. Applications, disclosures, and document signing are handled online and by phone from our Scottsdale office.
Get started
Request a consultation at /contact-us, or call 1-877-967-8286.
Licensing
Marketline Mortgage, LLC | NMLS #1842 | Arizona Mortgage Broker License MB-1049666
Licensed in Arizona, Florida, Texas, and Idaho. California operations are conducted through Marketline, Inc., NMLS #396643, CA DRE Corporate License #01893968.
Taum Hemmingsen, Mortgage Broker, NMLS #51267
Equal Housing Opportunity
Verify licenses at NMLS Consumer Access: https://www.nmlsconsumeraccess.org/
Texas residents: SML Consumer Notice — /texas-brokers-sml-consumer-notice