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Cash-Out Loans in Texas

Tap into your home’s equity to access cash for debt consolidation, home improvements, or major life expenses—all while staying in your current home. A cash-out refinance replaces your existing mortgage with a larger one, giving you the difference in cash. Available to homeowners across Texas, including Dallas, Austin, Houston, and San Antonio.

Key Highlights

Access cash from built-up home equity
Consolidate high-interest debt into one payment
Fund renovations or major purchases
Potentially lower your mortgage rate
Fixed-rate and adjustable-rate options available
Streamlined process with local Texas expertise

Qualification Overview

A cash-out refinance allows Texas homeowners to replace their current mortgage with a new loan for more than they owe, receiving the difference in cash. Most lenders allow you to borrow up to 80% of your home’s value, though limits can vary depending on credit, income, and property type. To qualify, you’ll need a solid payment history, stable income, and sufficient home equity. The funds can be used for nearly any purpose—from paying off credit cards or student loans to remodeling your home or building an emergency fund. Closing costs typically mirror those of a standard refinance, but many homeowners find the long-term benefits worth it.

Ideal Borrower

Homeowners with significant equity built up
Borrowers seeking to consolidate high-interest debt
Owners wanting to remodel or improve their home
Individuals with stable income and good credit
Texas residents planning to stay in their home long-term

Let's Get You Pre-Qualified!

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Example Scenario

Maria owns a home in Dallas worth $550,000 with a $300,000 remaining mortgage balance. She refinances into a new $400,000 loan, using $20,000 to pay off credit cards and $80,000 to update her kitchen and bathrooms. Her new monthly payment increases slightly, but she now has a single, lower-interest debt payment—and her home’s updated value increases her overall net worth.

See how Cash-Out refinance stacks up against VA IRRRL, Rate-And-Term and FHA Streamline refinance loan programs.

VA IRRRL

For current VA loan borrowers only
No appraisal or income verification needed
Low or waived funding fee for veterans
Streamlined process closes in as little as 30 days
Must show a lower rate or payment benefit

Rate-And-Term

No cash out—just change rate or loan term
May lower monthly payment or shorten payoff
Can remove PMI if equity ≥ 20%
Requires appraisal and income verification
Ideal for lowering long-term interest costs

FHA Streamline

Exclusive to existing FHA loan holders
No appraisal or income documentation required
Fast approval with minimal paperwork
Must show a tangible financial benefit
No cash-out option available

FAQ: Cash-Out Refinance Loans

How much cash can I take out with a refinance in Texas?

Most Texas lenders cap cash-out refinances at 80% of your home’s appraised value. For example, if your home is worth $500,000, the maximum total loan amount would generally be $400,000.

What are Texas’s specific laws about cash-out refinances?

Texas has unique home equity laws—known as Section 50(a)(6)—that set borrowing limits and rules on fees, closing locations, and loan frequency. You can only complete one cash-out refinance at a time, and the process must close at a licensed title company or attorney’s office.

How soon after buying a home can I do a cash-out refinance?

Most lenders require you to own the home for at least six months before you’re eligible for a cash-out refinance, though exceptions may apply if the property was purchased with cash.

Does a cash-out refinance affect my property taxes or insurance?

Your property taxes and homeowners insurance are unaffected by the refinance amount itself. However, because your home value is re-evaluated periodically, improvements made with your cash-out funds could increase your taxable value

Can I use a cash-out refinance to pay off credit cards or personal loans?

Yes. Many homeowners use cash-out funds to consolidate high-interest debt into one manageable, lower-rate mortgage payment

What credit score do I need for a cash-out refinance?

Requirements vary by lender, but most conventional cash-out refinances in Texas require a FICO® score of at least 620, with better rates available to borrowers over 700.

How long does a cash-out refinance take?

Typically 30–45 days from application to funding, depending on your lender, appraisal scheduling, and title work.