Best HELOC Lenders in Texas 2026
Texas homeowners average $138,000 in home equity, but the state constitution limits HELOC borrowing to 80% combined LTV rather than the 85-90% typical in other states. HELOC rates in Texas run near 8.7%, and the constitutional rules also impose a 12-day cooling-off period and restrict equity access fees to 2% of the loan amount. Texas homeowners should factor these restrictions into their borrowing calculations, as they reduce maximum available credit compared to comparable-equity homeowners in other states.
Updated June 2026 · Editorial Independence Policy
Best HELOC Lenders in Texas 2026
| Lender | Rate Type | Max LTV | Draw Period | Best For |
|---|---|---|---|---|
| Figure (Editor's Choice) | Fixed | 95% | 5 years | Fastest funding (5 days) |
| PenFed Credit Union | Variable | 90% | 10 years | Lowest variable rates |
| Bethpage Federal | Variable | 90% | 10 years | No closing costs |
| Bank of America | Variable | 85% | 10 years | Preferred Rewards discount |
| U.S. Bank | Variable | 85% | 10 years | High credit limits |
| Navy Federal | Variable | 95% | 20 years | Military & veterans |
All six lenders above operate in Texas. Rate data current as of June 2026. Your actual rate depends on credit score, combined LTV, draw amount, and property type. Texas residents: state constitutional rules cap HELOCs at 80% combined LTV.
Frequently Asked Questions
HELOCs in Texas: FAQ
HELOC rates in Texas currently average around 8. 7% for well-qualified borrowers, but your actual rate depends on credit score, combined LTV, and the amount you draw at closing.
Borrowers with FICO scores above 740 and combined LTV below 70% typically qualify for the lowest rates. Figure offers a fixed-rate HELOC starting around 8.
25% APR for top-tier applicants. Variable-rate products from PenFed, Bank of America, and U.
S. Bank track the prime rate plus a margin, so they shift as the Fed adjusts rates.
Most lenders in Texas will extend a HELOC up to 80% combined LTV, meaning your existing mortgage balance plus the HELOC cannot exceed 80% of your home's appraised value. On a home worth $500,000 with a $250,000 mortgage balance, 80% combined LTV allows up to a $150,000 credit line.
Texas homeowners average $138,000 in tappable equity, though amounts vary significantly by city and neighborhood.
Most HELOC lenders in Texas require a minimum FICO score of 680 for approval, with 720 or higher needed to access the best rates and highest LTV ratios. Figure and PenFed both offer HELOCs down to a 640 score with reduced LTV limits.
Bank of America Preferred Rewards members (Platinum Honors tier) can qualify for a 0. 625% rate discount on top of their score-based pricing.
If your score is below 680, paying down revolving balances to reduce credit utilization can often move the score into qualification range within 30-60 days.
Figure is the fastest option in Texas, with a 5-business-day funding guarantee from application to first draw for fully digital applications. PenFed and Bethpage Federal typically close in 2-4 weeks.
Bank of America and U. S.
Bank take 3-6 weeks due to full branch-based underwriting. Navy Federal averages 30-45 days for non-military applicants and 20-30 days for active duty and veterans.
If you need funds quickly for a time-sensitive opportunity, Figure is the clear choice in Texas.