Lone Star Financing

Texas Cash-Out Refinance

Tap into your home’s equity to finance renovations, consolidate debt, or cover major expenses

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Texas Cash-Out Refinance loans from Lone Star Financing with competitive rates and streamlined closings

Cash-Out Refinance in Texas:
Unlock Your Home's Equity

Unlock your home’s equity with a Texas cash-out refinance designed for fast closings, competitive rates, and a streamlined process backed by expert guidance from Lone Star Financing.

A Texas cash-out can help you:

Consolidate high-interest debt into one mortgage payment
Access equity for renovations, education expenses, or major life events
Create greater financial flexibility for long-term goals

When used strategically, a cash-out refinance can be a powerful financial tool for leveraging your home’s value while maintaining a structured repayment plan.

Fast. Secure. No Obligation.

Tap Your Home Equity with Confidence

Access up to 80% of your home’s available equity
Competitive rates with transparent, low fees, and streamlined approvals
Flexible loan options tailored to your financial goals

Texas Cash-Out Refinance Rules You Should Know

Understanding Texas home equity laws helps ensure your refinance is structured correctly from the start.

Limited Closing Costs

Lender closing costs cannot exceed 2% of your loan amount, excluding third-party fees like attorney, appraisal, and title insurance.

80% Max LTV

Our new loan cannot exceed 80% of your home’s value, leaving 20% equity untouched. For a $400,000 home, you can borrow up to $320,000.

Pay Off Existing Liens

If you already home equity line of credit (HELOC) or home equity loan, your new cash-out refinance will have to pay off these loans first.

12-Month Waiting Period

In Texas, you’re eligible for a cash-out refinance on your primary home after 12 months, or 6 months for investment properties. You must also wait 12 months between refinances.

7-Month Post-Foreclosure Rule

Borrowers must wait seven years after foreclosure, bankruptcy, or short sale before qualifying for a cash-out refinance.

Primary Residence Only

Texas cash-out refinance loans apply only to your primary home — not investment or second properties.

Texas Home Equity & Refinance Experts

Lone Star Financing is a Texas-based mortgage broker specializing in home equity and cash-out refinancing statewide. We combine local expertise, experienced underwriters, and modern technology to deliver a fast, streamlined refinance experience from start to finish.

TEXAS CASH-OUT REFINANCE

Common Ways to Use Funds from a Texas Cash-Out Refinance

A Texas cash-out refinance can help homeowners access available home equity and use those funds for major financial goals, home improvements, or other important expenses.

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Consolidate Credit Card Debt

Use available equity to pay off higher-interest credit card balances.

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Pay for Renovations

Fund home updates, repairs, or larger improvement projects.

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Invest in Real Estate

Use funds toward a down payment on an investment property.

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Cover Major Expenses

Access equity for large purchases, reserves, or financial flexibility.

How Much Can You Cash Out?

In Texas, cash-out refinance programs generally allow homeowners to borrow up to 80% of their property’s appraised value. For instance, if your home is worth $300,000, you may be eligible to access as much as $240,000 in equity.

More Refinance Options

Rate & Term

Lower your monthly payment, lower your rate, or improve loan terms.

FHA Streamline

Lower your FHA mortgage payment with a simplified refinance process.

VA IRRRL

Refinance option designed to help veterans with their existing VA loan.

HELOC Loans

Access your home equity with flexible HELOC options.

CASH-OUT REFINANCE

Common Questions, Answered

How Much Equity Can You Access

In Texas, most cash-out refinance loans are limited to 80% of your home’s appraised value. For example, if your home is worth $300,000, the maximum loan amount would typically be $240,000. The difference between your current mortgage balance and the new loan amount is the cash you may be able to access.

The amount you can cash out depends on factors such as your home value, current loan balance, credit profile, income, and loan program guidelines. Because Texas home equity rules are more restrictive than many other states, it’s important to structure the loan correctly from the beginning.

Can Veterans or FHA Borrowers do a Cash-Out?

Yes. Eligible VA and FHA homeowners can use cash-out refinance programs to access home equity, consolidate debt, or fund major expenses. In Texas, most cash-out refinance loans are limited to 80% of the home’s appraised value, meaning your new loan amount generally cannot exceed an 80% loan-to-value ratio.

The amount of cash available depends on your home value, current mortgage balance, credit profile, income, and loan program guidelines. Because Texas cash-out rules can be more restrictive than other states, it’s important to work with an experienced Texas mortgage team to structure the loan properly.

Texas Cash-Out Refinance Appraisal

Most Texas cash-out refinance loans require a home appraisal to determine your property’s current market value and calculate how much equity you can access. Under Texas law, cash-out loans are generally limited to 80% of the home’s appraised value.

During the appraisal, a licensed appraiser will evaluate your home’s condition, size, upgrades, and comparable sales in the area. The visit is typically quick, and the final appraisal helps determine your maximum loan amount.

To help support a smooth appraisal process, it’s a good idea to complete minor repairs, organize recent upgrade information, and make the home clean and accessible before the appointment.

What Are the Special Texas Cash-Out Refinance Rules?

Texas has unique home equity laws that apply to most cash-out refinances, commonly referred to as Section 50(a)(6) guidelines.

Key rules include:

Maximum 80% loan-to-value
12-day mandatory waiting period after application
Only one home equity loan allowed at a time
Closing must take place at a title company or attorney’s office
Additional consumer protections and disclosures required

These rules are designed to protect homeowners but can make Texas cash-out refinances more complex than in other states.

An experienced Texas lender can help ensure your refinance meets all state-specific requirements and closes smoothly.

Trusted by Texas Homebuyers

Real feedback from Lone Star Financing clients across Texas.

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★★★★★

Based on 54 Google reviews

Daniel Ramirez

2 months ago

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★★★★★

Jen made our first home mortgage process easy and stress-free. She was extremely responsive, explained everything clearly, and helped us secure a great rate.

Sharon Darby

3 months ago

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★★★★★

Outstanding experience with Lone Star Financing. Brett did a phenomenal job from start to finish.

Bettis Morelock

3 months ago

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★★★★★

Brett is so helpful. Quality service. Can’t recommend enough.

Trusted mortgage broker for cash-out refinancing in Texas

Unlock your home’s equity with a Texas cash-out refinance. With in-house underwriting and processing, we can close quickly—often in as little as 21 days. Access funds for major expenses and speak with a refinance specialist to see if a cash-out refinance is right for you.

Texas Cash-Out Refinance