Best HELOC Lenders in Austin, TX (2026)

Austin's explosive growth has created some of the most significant equity gains in the country. Homeowners who bought in the Texas capital before 2021 may have seen their equity double. With the median home value near $540,000 and a large stock of homes purchased at much lower prices, HELOCs are a logical tool for Austin homeowners looking to renovate, invest, or consolidate debt.

But Texas is different. Before comparing lenders, every Austin homeowner needs to understand Texas's unique home equity rules — the most restrictive in the country. These laws shape which lenders can compete, what rates they offer, and how much you can borrow.

[Texas Home Equity Laws](/blog/heloc-rates-texas): What Austin Borrowers Must Know

Texas's constitutional home equity laws create a specific framework:

• 80% CLTV cap: Texas limits home equity borrowing to 80% of your home's fair market value. No exceptions, no matter how strong your credit. If your home is worth $540,000 and your mortgage balance is $300,000, your maximum HELOC is $132,000 (80% of $540,000 minus $300,000).
• One equity loan at a time: You can have only one home equity loan or HELOC at a time on a Texas property.
• 12-day waiting period: After receiving HELOC disclosures, you must wait 12 days before closing (longer than the federal 3-day rescission period).
• Lender-at-fault rule: If a lender violates Texas home equity laws, the borrower may be able to void the loan without repaying — this makes lenders cautious about non-compliant products.

These rules mean fewer lenders serve the Texas HELOC market, and those who do are more conservative. But it also means the lenders who do compete are experienced with Texas-specific requirements.

Current HELOC Rates in Austin (February 2026)

The 80% CLTV limit is universal across all lender types in Texas — this is a constitutional requirement, not a lender preference.

Best HELOC Lenders in Austin

1. University Federal Credit Union (UFCU) ⭐ Best Overall

UFCU is Austin's premier local credit union, with deep roots in the city and highly competitive HELOC products designed for Texas's unique legal environment.

• Rates: As low as 7.25% APR for members with excellent credit
• Draw period: 10 years
• Repayment period: 15 years
• Max CLTV: 80% (Texas law)
• Minimum credit score: 680
• Closing costs: Typically low ($500–$1,000); UFCU often covers appraisal fees
• Best for: Austin homeowners and UT-affiliated individuals who qualify for UFCU membership

UFCU's local underwriting team understands Austin's neighborhood-level value variations better than any national algorithm.

2. Amplify Credit Union ⭐ Best Rates

Amplify (formerly Austin Telco Federal Credit Union) is Austin-based and one of the most competitive HELOC lenders in Central Texas.

• Rates: Prime minus 0.75% to prime minus 1.00% for qualifying members
• Draw period: 10 years
• Max CLTV: 80% (Texas law)
• No [prepayment penalty](/blog/dscr-loan-prepayment-penalty)
• Low closing costs
• Best for: Rate-focused Austin borrowers willing to open Amplify membership

3. Frost Bank ⭐ Best Texas Community Bank

Frost Bank is a Texas institution with a long track record of home equity lending. Its deep knowledge of Texas law makes it a reliable choice for Austin borrowers.

• Rates: 7.75% – 9.00% APR
• Draw period: 10 years
• Repayment period: 20 years
• Max CLTV: 80% (Texas law)
• Minimum draw: $25,000
• Best for: Austin homeowners who prefer a Texas bank with a long institutional history

4. Prosperity Bank ⭐ Best for Self-Employed

Prosperity Bank operates across Texas and has underwriting flexibility for self-employed borrowers, small business owners, and those with irregular income — a significant segment of Austin's gig-economy workforce.

• Rates: 8.00% – 9.25% APR
• Draw period: 10 years
• Manual underwriting available
• Best for: Austin freelancers, entrepreneurs, and 1099 workers who need flexible income documentation

5. Wells Fargo ⭐ Best National Bank in Texas

Not all national banks offer HELOCs in Texas due to the state's strict regulations, but Wells Fargo is one that does — and with a strong Austin branch presence.

• Rates: 7.99% – 9.25% APR
• Max CLTV: 80% (Texas law)
• Relationship discount: Existing customers may receive better rates
• Draw period: 10 years
• Best for: Existing Wells Fargo customers who want branch support in Austin

Note: Several major national banks (Bank of America, Chase) have limited or no HELOC offerings in Texas. Always verify availability before applying.

6. Spring EQ ⭐ Best Online Lender for Texas

Spring EQ specializes in home equity products and is well-versed in Texas HELOC law — a critical differentiator when choosing an online lender.

• Rates: 7.50% – 10.99% APR
• Max CLTV: 80% (Texas law)
• Fast process: Typically 2–3 weeks to close
• Minimum credit score: 660
• Best for: Austin homeowners who want a faster, tech-driven process without sacrificing Texas legal compliance

7. Figure ⭐ Best for Speed (with caveats)

Figure operates in Texas but with important structural differences from traditional HELOCs. It offers a full-draw product (not a revolving credit line) that may not suit all borrowers.

• Rates: 7.50% – 10.99% APR
• Draw structure: Full draw at closing; not a revolving line
• Max CLTV: 80% (Texas law)
• Closing time: 5–7 business days
• Best for: Austin borrowers who need speed and understand Figure's non-revolving structure

Calculating Your Austin HELOC Limit

Texas's 80% CLTV cap means careful math. Here's how it works:

Example:

• Home value: $540,000
• 80% cap: $432,000
• Current mortgage balance: $280,000
• Maximum HELOC credit line: $152,000

If your existing mortgage is high relative to your home value, your HELOC limit may be smaller than expected. Increasing your home's appraised value (through documented improvements or a new appraisal with updated comps) is the main lever you have.

Austin Market Dynamics Affecting HELOCs

The Post-Boom Correction

Austin saw significant home value appreciation through 2022, followed by a notable correction in 2023. Values have stabilized in 2024–2026, but the correction means some owners who bought at peak prices have less equity than expected. Verify your current appraised value before assuming you have a large credit line available.

Neighborhood Variation

East Austin, South Congress, and central neighborhoods have held value well. Far north and south suburbs (Pflugerville, Kyle, Buda) saw steeper corrections. Know your specific neighborhood's comp data.

Austin's Tech Economy

Austin's tech sector — with major employers like Dell, Apple, Tesla, and numerous startups — means many homeowners are well-qualified HELOC borrowers on paper but may have variable comp income. Lenders differ significantly in how they handle RSUs, bonuses, and equity compensation.

HELOC vs. [Cash-Out Refinance](/blog/cash-out-refinance-guide) in Austin

As in other markets, Austin homeowners with low-rate mortgages (sub-5%) should strongly prefer a HELOC over cash-out refinancing at today's rates. The Texas 80% CLTV cap applies equally to cash-out refis and HELOCs, so the borrowing capacity is similar — but with a HELOC, your existing rate stays intact.

Read: HELOC vs. Cash-Out Refinance 2026

Austin HELOC Uses

• Home renovations: Kitchens and outdoor living spaces have strong ROI in Austin
• ADU/garage apartment construction: Austin's housing shortage makes rental ADUs highly valuable
• Investment property down payments: DSCR loans are popular in Central Texas — see DSCR Loans in Austin
• Business funding: Austin's startup culture means many homeowners fund early-stage ventures with HELOC draws

Frequently Asked Questions

What happens if I want more than 80% CLTV in Texas? Texas law prohibits it. Your only option for accessing equity above 80% is to sell or use an unsecured loan (which will be at higher rates).

Can I have a first lien HELOC in Texas? Texas law allows HELOCs to be in first or second lien position, but most are second-lien (behind your existing mortgage).

How long does the closing process take in Austin? Due to Texas's 12-day waiting period plus lender processing time, most Austin HELOCs close in 3–5 weeks. Rushing is not possible due to the mandatory waiting period.

Do Austin credit unions have better rates than banks? Generally yes — UFCU and Amplify consistently beat national banks by 0.50%–1.00% APR.

Related Articles

• HELOC Rates in Austin, TX (2026)
• Texas HELOC Guide
• DSCR Loans in Austin
• HELOC vs. Cash-Out Refinance 2026
• [[HELOC for Investment Property](/blog/dscr-vs-heloc-for-investment-property)](/blog/heloc-for-investment-property)
• [[[Best HELOC Rates](/blog/heloc-rate-negotiation-guide) 2026](/blog/best-heloc-rates-2026)](/blog/best-heloc-rates-2026)
• [[HELOC Tax Deduction](/blog/heloc-tax-deduction-guide) Guide](/blog/heloc-tax-deduction-guide)