In Texas, what is the maximum equity loan amount a homeowner can borrow?

In Texas, the maximum equity loan amount a homeowner can borrow is capped at 80% of the home’s value. This regulation is in place to protect consumers by ensuring that they retain a significant portion of their home’s equity and to prevent homeowners from taking on excessive debt against their properties. The 80% limit applies to the combined total of all loans secured by the home, which means that homeowners can only utilize equity financing up to this threshold. By adhering to this guideline, the Texas law aims to promote financial responsibility among borrowers and reduce the risk of foreclosure for homeowners who may not be able to manage higher debt levels. This regulation reflects a balance between allowing access to credit and safeguarding consumers' financial stability.