Texas Home Equity Loans Bad Credit Solutions Revealed

Real-World Examples and Considerations

Consider a homeowner with a property valued at $300,000 and an outstanding mortgage of $150,000. With $150,000 in equity, they could potentially access a significant loan amount. However, Texas law limits home equity loans to 80% of the home's value, meaning the maximum loan amount would be $90,000 in this scenario³. This regulation aims to protect both lenders and borrowers by ensuring adequate equity remains in the home.