Program highlights
- HELOC
- Purchase money 2nd
- Jumbo cash-out (unlimited, but varies on LTV)
- Owner occupied, 2nd homes and non-owner occupied (Non-QM)
- DSCR options available
- 12 or 24 month bank statements
- Asset utilization (no DTI, lite doc)
What are my options for using home equity?
You can access home equity three main ways: a cash-out refinance, a home equity line of credit (HELOC), or, when buying, a purchase money second mortgage. The right choice depends mostly on your current first mortgage and how you plan to use the money.
Cash-out refinance
A cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash at closing. You end up with one loan and one payment. It tends to make the most sense when you would be happy to replace your current first mortgage anyway, or when you need a large, one-time amount.
Cash-out is available on conventional, FHA, VA, jumbo, and Non-QM loans. On our jumbo program, the cash-out amount is not capped at a fixed dollar figure, but it varies based on your loan to value. For investment properties, DSCR cash-out lets you qualify on rental income instead of personal income, and bank statement and asset utilization options help self-employed owners.
HELOC
A HELOC is a second lien that works like a credit line secured by your home. You draw what you need, when you need it, during a draw period, then repay over time. The biggest advantage is that your existing first mortgage stays in place. If you have a first mortgage you want to keep, a HELOC is often the better tool. HELOCs usually have variable rates, so we walk through how payments can change.
Purchase money second
A purchase money second is a second mortgage taken at the time you buy a home, alongside your first mortgage. Buyers use it to reduce their down payment, to keep the first mortgage within conforming or conventional limits, or to avoid mortgage insurance. We compare it against a single larger loan so you see the full cost.
Texas home equity rules
Texas has its own constitutional rules for borrowing against a homestead. Cash-out loans and HELOCs on a Texas primary residence generally cannot exceed 80% of the home's value in total borrowing, there are required waiting periods and disclosures before closing, and limits on how often you can take one. Investment properties and second homes follow different rules. We explain exactly which rules apply to your property before you apply.
Who it fits
Equity options fit homeowners who want to renovate, pay off higher-cost debt, cover education costs, or buy another property. They are not a fit for everyone. Borrowing against your home puts it on the line, so we are careful to make sure the payment and the purpose make sense.
What you need to apply
- Your current mortgage statement and homeowners insurance
- Pay stubs and W-2s or tax returns, or bank statements for Non-QM
- Two months of bank statements
- Leases, for investment properties
- A valid ID
How we help in Austin
Many Central Texas homeowners have built substantial equity. We compare a cash-out refinance, a HELOC, and keeping things as they are, side by side, including Texas homestead rules, so you can see which option costs the least for what you need. We offer equity options in all 12 of our licensed states.
Additional terms and conditions apply. Not all loan types are compatible with this product. Subject to underwriting conditions. Not a promise to make a loan. All borrowers must qualify.
Cash-Out Refinance and HELOC: common questions
Should I get a cash-out refinance or a HELOC?
If you have a first mortgage you want to keep, a HELOC usually makes more sense because it leaves that loan alone and adds a separate credit line. If you would replace your first mortgage anyway, or need a large one-time amount, a cash-out refinance can be simpler with one payment. We compare both with your real numbers before you decide.
How much equity can I take out of my home in Texas?
For a Texas homestead, total borrowing on a cash-out loan or HELOC generally cannot exceed 80% of the home's appraised value, and Texas requires specific disclosures and waiting periods before closing. Second homes and investment properties follow different guidelines. We calculate your available equity based on your home's value, current balance, and loan type.
What is a purchase money second mortgage?
A purchase money second is a second mortgage you take out at the same time you buy a home. It can reduce the down payment you need, keep your first mortgage below certain loan limits, or help you avoid mortgage insurance. It adds a second payment, so we compare it against a single larger loan to show which costs less.
Can I take cash out of a rental property?
Yes. Investment property cash-out is available on conventional and Non-QM loans, including DSCR cash-out that qualifies on rental income instead of your personal income. Investment property cash-out typically allows less equity to be taken than a primary residence. Many investors use it to fund the down payment on their next rental.
Can I use a cash-out refinance to pay off debt?
Yes, and many homeowners do. Replacing higher-cost debt with mortgage debt can lower your total monthly payments, but it also spreads that debt over a longer term and secures it with your home. We show you the total cost over time, not just the monthly change, so you can make an informed decision.