Cash-Out Refinance in Texas: Turn Home Equity Into Cash — the 50(a)(6) Way
A Texas cash-out refinance replaces your current mortgage with a larger one and pays you the difference in cash — up to 80% of your home’s value, under the homeowner protections of Section 50(a)(6) of the Texas Constitution. Adam Bartling, a retired U.S. Army Captain and Texas mortgage broker, shops multiple lenders so they compete for your business — with no upfront credit check to start the conversation.
What is a cash-out refinance in Texas?
A cash-out refinance pays off your existing mortgage with a new, larger loan and gives you the difference in cash at funding. In Texas, any loan that pulls equity out of your primary home is governed by Section 50(a)(6) of the Texas Constitution — you can borrow up to 80% of your home’s appraised value, counting every lien on the property.
Key takeaways
- 80% combined loan-to-value cap. All liens together can’t exceed 80% of appraised value — you always keep at least 20% equity.
- 2% cap on lender fees — with statutory exclusions for the appraisal, survey, base title premium, and title exam.
- 12-day cooling-off period and a 3-day right to cancel after closing. The loan can’t fund until the rescission window passes.
- Once per 12 months, one at a time. A new 50(a)(6) loan can’t close within a year of your last one, and only one 50(a)(6) lien can exist on the home at a time.
- No VA or FHA cash-out on a Texas homestead. Pulling equity from your primary home in Texas means a conventional 50(a)(6) loan — for veterans and civilians alike.
- Use the cash for anything. Texas law places no restrictions on how you use the money — the right question is whether the use justifies restructuring your mortgage.
What Is a Cash-Out Refinance in Texas?
Last updated: July 27, 2026
A cash-out refinance pays off your existing mortgage with a new, larger loan and gives you the difference in cash at funding. In Texas, any loan that pulls equity out of your primary home is governed by Section 50(a)(6) of the Texas Constitution — the strictest set of homeowner protections in the country, and the reason Texas cash-outs work differently than anywhere else.
Texans often call it a “Texas A6” loan. Because the rules are written into the state constitution, they apply to every lender, every time — no exceptions and no fine print. We keep a full plain-English guide to the Texas 50(a)(6) cash-out refinance rules if you want the deeper legal breakdown, statute citations included.
Texas Is Different: The 50(a)(6) Rules at a Glance
- 80% combined loan-to-value cap. All liens together can’t exceed 80% of appraised value — you always keep at least 20% equity.
- 2% cap on lender fees — with statutory exclusions for the appraisal, survey, base title premium, and title exam.
- 12-day cooling-off period. Closing can’t happen before the 12th day after the later of your application or the lender’s required notice.
- 3-day right to cancel after closing. The loan can’t fund until the rescission window passes.
- Once per 12 months, one at a time. A new 50(a)(6) loan can’t close within a year of your last one, and only one 50(a)(6) lien can exist on the home at a time.
- Homestead only. Primary residence only — and since 2018, homes on agricultural-exemption land qualify too.
Full details, statute by statute, are in our guide to Texas 50(a)(6) rules.
Educational content only — not legal advice. Confirm current requirements with your lender or an attorney before closing.
How Much Cash Can You Get From a Texas Cash-Out Refinance?
You can borrow up to 80% of your home’s appraised value, counting every lien on the property. Take 80% of your home’s value, subtract your current mortgage balance and closing costs, and what’s left is your available cash. The 80% cap is constitutional — no Texas lender can exceed it on a homestead.
| Example | Amount |
|---|---|
| Appraised home value | $400,000 |
| Maximum new loan (80% of value) | $320,000 |
| Current mortgage balance | $200,000 |
| Estimated cash available (before closing costs) | ≈ $120,000 |
For 2026, the conforming loan limit is $832,750 in every Texas county (FHFA), so most Texas cash-out refinances fit comfortably inside conventional guidelines. Want to see your own numbers? Run them through our refinance calculator, then let’s pressure-test the strategy together.
What Do Texans Use Cash-Out Refinance Money For?
Anything — Texas law places no restrictions on how you use the cash. The most common uses we see are home improvements, consolidating high-interest debt, funding investments or a down payment on another property, and covering major life expenses. The right question isn’t “can I?” but “does this use justify restructuring my mortgage?”
Home Improvements
Renovations and additions that can add value back into the home — often the cleanest use of equity.
Debt Consolidation
Replace high-interest credit card or personal loan balances with one mortgage payment. We model the trade-offs honestly before you commit.
Investing & Down Payments
Fund a rental purchase or business opportunity. Pairs well with our DSCR investor loans. Learn more →
Major Expenses
College tuition, medical costs, or a family milestone — planned against your long-term equity position.
Cash-Out Refinance vs. Home Equity Loan vs. HELOC — Which Is Right?
It depends mostly on your current first-mortgage rate. A cash-out refinance replaces your whole mortgage — ideal when restructuring makes sense. A second-lien Texas home equity loan or HELOC leaves a low existing rate untouched while you borrow a smaller amount. All options share the same 80% combined cap.
| Option | What Happens to Your First Mortgage | Best When |
|---|---|---|
| Cash-out refinance | Replaced by one new, larger loan | Restructuring your whole mortgage makes sense |
| Home equity loan (second lien) | Untouched — new fixed-rate loan sits behind it | You’re protecting a low first-mortgage rate |
| HELOC | Untouched — revolving credit line behind it | You want flexible, draw-as-needed access |
We break down the numbers side by side in our guide to HELOC vs. cash-out refinance. This structure-and-strategy evaluation is the first conversation we have — before anyone runs credit.
Can You Get a VA or FHA Cash-Out Refinance in Texas?
What veterans can do: keep the VA first mortgage you already have and add a second-lien home equity loan behind it, refinance the rate with a VA IRRRL streamline (no cash out), or run a conventional 50(a)(6) cash-out. As a fellow veteran, Adam will tell you straight when a product doesn’t exist in Texas rather than walking you toward a dead end in underwriting. The 50(a)(6) rules guide covers the veteran-specific details.
Strategy First, Credit Pull Later
Tell Adam what you’re trying to do with your equity, and he’ll map the 50(a)(6) math and shop multiple lenders who compete for your business — no upfront credit check and no obligation.
How Does the Texas Cash-Out Refinance Process Work?
From first call to funded cash, expect roughly 30–40 days. The constitutional 12-day notice and 3-day rescission are built into every lender’s timeline, so they rarely add real delay — we use those windows for documents, appraisal, and lender shopping. Here’s the step-by-step path.
- Strategy Conversation We confirm which tool fits: a 50(a)(6) cash-out, a second-lien equity loan, or something else entirely. No upfront credit check.
- Application & the 12-Day Notice You apply and receive the required consumer disclosure; the clock runs from the later of the two. We gather documents inside the window.
- Appraisal & Lender Shopping The appraisal sets your 80% math while we shop your file to multiple lenders who compete. The 2% lender-fee cap applies no matter who wins.
- Underwriting Your dedicated processor checks the file against every 50(a)(6) requirement, so there are no compliance surprises at the table.
- Closing, 3-Day Rescission & Funding You close in person with final terms disclosed in advance. After your 3-day right to cancel passes, the cash disburses.
When Does a Cash-Out Refinance Make Sense — and When Should You Wait?
It tends to make sense when the new rate is at or near your current one, the cash funds something durable, and you keep a comfortable equity cushion. It’s often better to wait — or use a second-lien option — when you’d give up a low locked-in rate for a small amount of cash.
A cash-out refinance may fit if…
Your current mortgage rate is no longer a bargain worth protecting; the funds build value (renovation, high-interest debt payoff, investment); and you’ll still have plenty of equity after the 80% cap. See our Texas refinance options. Learn more →
Waiting — or a second lien — may fit if…
You’re protecting a low first-mortgage rate; you need a smaller amount; or the payment would stretch your budget. A Texas home equity loan may do the job without touching your first mortgage. Learn more →
Either way, the annual review is part of the deal: as your lender for life, we re-check your mortgage and equity position every year so the structure keeps working as rates and life change.
Why Texans Work With Adam
Veteran-Owned
Retired U.S. Army Captain
We Work for You
Not a bank — multiple lenders compete
No Upfront Credit Check
Strategy first, credit pull later
Lender for Life
Annual mortgage & equity review included
Texas Cash-Out Refinance FAQs
How much cash can I get from a cash-out refinance in Texas?
Up to 80% of your home’s appraised value across all liens, minus your current mortgage balance and closing costs. On a $400,000 home with a $200,000 balance, 80% is $320,000 — roughly $120,000 available before costs. The 80% cap is set by the Texas Constitution and no lender can exceed it on a homestead.
Can I do a VA or FHA cash-out refinance in Texas?
No. The VA does not guarantee and FHA does not insure loans made under Texas Section 50(a)(6), so VA and FHA cash-out refinances are not available on a Texas homestead. Texans pull equity with a conventional 50(a)(6) loan; the VA IRRRL and FHA Streamline, which allow no cash out, remain fully available.
What is the 12-day rule for a Texas cash-out refinance?
Your loan cannot close before the 12th day after the later of your loan application or the day the lender delivers the required consumer disclosure notice. It is a constitutional cooling-off period, and good lenders complete the appraisal and processing inside that window, so it rarely delays your closing.
Can I cancel a Texas cash-out refinance after closing?
Yes. Texas gives you and your spouse 3 days after closing to rescind the loan for any reason — Sundays and federal holidays do not count toward the three days. The loan cannot fund until the rescission window passes, so your cash arrives a few days after you sign.
How often can I do a cash-out refinance in Texas?
Once every 12 months per homestead, measured from your last 50(a)(6) closing date — and only one 50(a)(6) lien can exist on the property at a time. Even a no-cash refinance of an existing Texas equity loan cannot close before that first anniversary, so plan multi-step equity moves in advance.
Is a cash-out refinance or a home equity loan better in Texas?
It depends on your current first-mortgage rate. If your existing rate is low, a second-lien home equity loan or HELOC leaves it untouched while you borrow a smaller amount. If restructuring your whole mortgage makes sense, a cash-out refinance replaces it in one loan. Both follow the same 80% combined cap.
What fees can a lender charge on a Texas cash-out refinance?
Lender fees — origination, underwriting, processing, and similar charges — are capped at 2% of the loan amount by the Texas Constitution. The appraisal, survey, base title insurance premium, and title examination report are excluded from the cap, and bona fide discount points count as interest, not fees.
Adam Bartling
Loan Officer · NMLS# 2213358 · Retired U.S. Army Captain
Adam Bartling served 22 years in the U.S. Army before becoming a Texas mortgage broker, licensed by the Texas Department of Savings and Mortgage Lending (NMLS #2213358) and sponsored by Texas Lending Pro, Inc. (NMLS #2322982). Based in Katy at 28111 S Firethorne Rd #703 and serving all 254 Texas counties, Adam brings military discipline and an education-first approach to Texas equity lending — a specialty where the constitutional details genuinely matter. He shops multiple lenders so they compete for your business, and he treats every client as a lender-for-life relationship, not a transaction.
He answers the phone until 8 pm at (713) 301-0007, starts every file with strategy instead of a credit pull, and pairs each client with a dedicated processor from application to funding. Meet Adam
Put Your Texas Equity to Work — the Right Way
Whether it’s a 50(a)(6) cash-out, a home equity loan, or waiting for a better moment, Adam and his team will walk you through what’s actually allowed in Texas — in plain English, with no upfront credit check and no obligation. We shop multiple lenders so they compete for your business: we work for you, not a bank. Call (713) 301-0007 — answered until 8 pm — or start the conversation online. Serving all 254 Texas counties.