Best HELOC Rates in Fort Worth 2026

Fort Worth combines Western heritage with modern growth, creating a dynamic housing market with median home values around $350,000. As part of the booming Dallas-Fort Worth metroplex, Fort Worth has experienced strong appreciation while maintaining more affordable pricing than its Dallas counterpart.

However, Texas has some of the nation's most restrictive home equity lending laws, which significantly affect HELOC products. This guide examines the best HELOC rates available in Fort Worth while navigating Texas's unique regulatory environment.

Current Fort Worth HELOC Rates

HELOC rates in Fort Worth currently range from 7.75% to 10.20% APR depending on credit score, loan-to-value ratio, and lender. Texas-specific regulations mean HELOC products here differ substantially from those in other states.

Key lenders serving Fort Worth include:

Local Credit Unions: Fort Worth Community Credit Union, University Federal Credit Union, and Texans Credit Union offer competitive rates with local knowledge.

Regional Banks: Frost Bank and Texas Trust Credit Union provide Texas-specific expertise.

National Banks: Wells Fargo, Chase, and Bank of America serve Fort Worth with standardized (but Texas-compliant) products.

Online Lenders: Figure and other digital lenders operate in Texas, complying with state-specific rules.

Top HELOC Lenders in Fort Worth

University Federal Credit Union

University Federal, serving Tarrant County residents, offers HELOCs with rates starting around 7.75% APR.

Highlights:

• No closing costs on many HELOCs
• Up to 80% LTV (Texas law maximum)
• Membership available to Tarrant County residents
• Understanding of Fort Worth neighborhoods
• Local decision-making
• Community focus

University Federal's understanding of Fort Worth—from Sundance Square to Alliance to the Cultural District—makes them particularly valuable for local borrowers.

Fort Worth Community Credit Union

Serving Fort Worth and surrounding areas, FWCCU offers HELOCs with rates starting around 7.85% APR.

Highlights:

• Competitive member rates
• Up to 80% LTV
• Local market knowledge
• Flexible qualification criteria
• Multiple Fort Worth branches
• Understanding of Texas home equity laws

Frost Bank

Frost Bank, a Texas institution with major Fort Worth operations, provides HELOCs with rates starting around 7.95% APR.

Highlights:

• Texas-specific expertise
• Seamless navigation of state regulations
• Up to 80% LTV
• Relationship banking benefits
• Local branches throughout Fort Worth
• Personalized service

Frost's Texas heritage means they understand state home equity laws intimately while providing responsive local service.

Texans Credit Union

Texans CU serves North Texas with competitive HELOC rates starting around 8.00% APR.

Highlights:

• No closing costs for qualified members
• Up to 80% LTV
• Understanding of DFW market dynamics
• Local underwriting
• Membership broadly available
• Strong regional presence

Figure

Figure offers HELOCs to Fort Worth homeowners online, with rates starting around 8.15% APR. Their product complies with Texas's unique requirements.

Highlights:

• Fully online application
• Fast funding (as few as 5 days)
• Up to 80% LTV (Texas maximum)
• Borrow $15,000 to $400,000
• No prepayment penalties
• Digital-first experience

For Fort Worth's tech-savvy professionals, Figure offers speed and convenience while navigating Texas regulations.

Understanding Texas Home Equity Laws

Texas has constitutional protections for homesteads that significantly restrict home equity borrowing. These rules apply throughout Texas, including Fort Worth:

80% Maximum Loan-to-Value

Texas law caps total home equity debt at 80% of fair market value:

• Your first mortgage plus HELOC cannot exceed 80% of home value
• Stricter than the 90% CLTV common in other states
• No exceptions—lenders cannot exceed this limit

Single HELOC Only

Texas homeowners can have only ONE home equity line of credit at a time:

• Cannot have multiple HELOCs on the same property
• Cannot have both a home equity loan and HELOC simultaneously
• Must close existing HELOC before opening a new one

12-Day Waiting Period

Texas requires a 12-day waiting period between HELOC application and closing:

• Protects borrowers from high-pressure tactics
• Extends timeline compared to other states
• No way to expedite or waive this period

No Refinancing for One Year

You cannot refinance or pay off a HELOC with a new home equity product for 12 months after closing:

• Plan carefully—you're committed for at least a year
• Applies to both HELOCs and home equity loans
• No exceptions to this rule

Specific Closing Requirements

Texas mandates:

• Closings must occur at lender's office, title company, or attorney's office (not your home)
• Extensive disclosures outlining borrower rights
• Spanish-speaking borrowers receive documents in Spanish
• Specific notice periods and forms

Limited Rate Conversion Options

Unlike other states, Texas doesn't easily allow converting HELOCs to fixed-rate loans:

• While some lenders offer workarounds, the process is complex
• Plan for potential rate volatility
• Consider this when choosing between HELOC and home equity loan

Fort Worth Market Characteristics

Strong Appreciation

Fort Worth has experienced robust appreciation in recent years:

• 10-15% annual appreciation 2020-2025
• Median values around $350,000 in 2026
• Corporate relocations to DFW driving demand
• More affordable than Dallas while offering urban amenities

Homeowners who purchased pre-2020 typically have substantial equity available.

Economic Growth

Fort Worth's economy is diversified and growing:

Corporate Headquarters: American Airlines, BNSF Railway, Pier 1 (historically)

Defense: Lockheed Martin (major F-35 production), Bell Helicopter

Healthcare: Texas Health Resources, Cook Children's, JPS Health

Energy: Traditional oil/gas presence transitioning to renewables

Logistics: Alliance Global Logistics Hub, major distribution centers

This diversification provides economic stability supporting home values.

Neighborhood Variations

Fort Worth neighborhoods offer different characteristics:

Downtown/Sundance Square: Urban development, condos, young professionals, revitalization

TCU Area: Near Texas Christian University, student rentals, family homes

Alliance/North Fort Worth: Corporate centers, newer development, master-planned communities

Cultural District/Museum District: Established neighborhoods, museums, cultural amenities

Southside: Revitalization area, appreciating, diverse

West Fort Worth: Traditional suburbs, family-oriented

Lenders familiar with Fort Worth understand these neighborhood dynamics.

Texas Property Characteristics

Fort Worth homes often feature:

• Larger lots compared to Dallas
• More single-family homes vs. high-density
• Newer construction in Alliance and north areas
• Historic homes in Fairmount, Berkeley areas
• HOA communities in master-planned developments

How Much Can You Borrow?

Fort Worth homeowners can borrow based on Texas's 80% LTV limit:

Example: If your Fort Worth home is worth $360,000 and you owe $220,000 on your mortgage:

• Maximum total debt: $288,000 (80% of $360,000)
• Existing mortgage: $220,000
• Available HELOC: $68,000

Texas's stricter limit means you access less equity than borrowers in other states, but it also protects against overleveraging.

Credit Requirements: Most competitive rates require FICO scores of 700+, though some lenders work with borrowers at 640+ (at higher rates).

Income Documentation: Fort Worth's diverse economy means lenders see varied employment. Standard W-2 or 1099 documentation typically required.

Common HELOC Uses in Fort Worth

Fort Worth homeowners typically use HELOCs for:

Home Improvements: Pool installations (Texas heat), outdoor living spaces, kitchen/bathroom remodels, energy-efficient HVAC

Education Expenses: Funding college (TCU, UTA, UNT, Texas Tech, etc.)

Debt Consolidation: Paying off high-interest credit cards or auto loans

Business Capital: Fort Worth's entrepreneurial culture means some use HELOCs for business funding

Investment Properties: DFW's strong rental market attracts investor interest

Vehicle Purchases: Some homeowners prefer HELOC rates over auto loans

Emergency Reserves: Backup funds for unexpected expenses

Draw and Repayment Periods

Standard HELOC structure:

Draw Period (typically 10 years): Borrow and repay up to your credit limit. Minimum payments usually interest-only, though you can pay principal.

Repayment Period (typically 15-20 years): No additional borrowing. Your balance amortizes with principal and interest payments.

Texas law doesn't alter this structure, but the inability to easily refinance means careful planning for the repayment period transition is crucial.

Qualifying for Best Rates

To access the lowest Fort Worth HELOC rates:

1. Credit score 720+: Strong creditworthiness essential
2. Conservative LTV: While Texas caps at 80%, borrowing at 70% often reduces rates by 0.25-0.50%
3. Stable employment: Two+ years with current employer
4. Existing relationship: Frost, local credit unions offer relationship discounts
5. Low debt-to-income: Keeping DTI below 40% improves approval and rates
6. Strong income documentation: Clear W-2, pay stubs, tax returns
7. Shop multiple lenders: Rates can vary by 1%+ for identical profiles

Application Process and Timeline

Fort Worth HELOC applications typically follow this timeline:

1. Pre-qualification (1-2 days): Initial credit review and rate quote
2. Application (3-5 days): Full documentation submission
3. 12-Day Waiting Period: Texas-mandated (starts at application)
4. Appraisal (1-2 weeks): Required by most lenders; costs $400-550 in Fort Worth
5. Underwriting (1-2 weeks): Document verification, title work
6. Closing (at lender/title office): Sign documents
7. 3-Day Rescission: Federal right-to-cancel period
8. Funding: Access to funds after rescission

Total timeline: 5-7 weeks minimum (due to 12-day waiting period), though well-prepared applications can close closer to minimum.

Texas-Specific Considerations

No State Income Tax

Texas has no state income tax, increasing take-home pay compared to high-tax states. However, HELOC interest deductibility depends on federal tax rules, not state taxes.

Property Taxes

Tarrant County property taxes are relatively high:

• Average 2.0-2.5% of assessed value
• Fort Worth ISD and other districts set rates
• Homestead exemptions reduce taxable value
• Property tax increases can affect overall affordability

Homestead Exemptions

Texas offers generous homestead exemptions from property taxes:

• School district exemptions
• County/city exemptions
• Over-65 exemptions
• Ensure you've filed for all applicable exemptions

HOA Communities

Many Fort Worth neighborhoods have HOAs (especially newer master-planned communities):

• Annual fees typically $400-$1,500
• Lenders review HOA financial health
• Delinquent HOA fees can affect HELOC approval
• Some communities have significant amenities

Tax Considerations

HELOC interest may be tax-deductible if funds are used to "buy, build, or substantially improve" your home. Texas has no state income tax, but federal tax deductibility applies.

Tax situations vary individually. Consult a tax professional familiar with federal tax law, especially if you itemize deductions.

HELOC Alternatives

Cash-Out Refinance: Also subject to Texas's 80% LTV limit, but might make sense if current mortgage rates are attractive.

Home Equity Loan: Fixed rate and predictable payments; still subject to Texas's 80% limit and one-year refinance restriction.

Personal Loan: For smaller amounts ($15,000-$40,000), personal loans avoid Texas's home equity restrictions, though rates are higher.

Business Line of Credit: For business purposes, commercial credit lines avoid homestead restrictions (but don't use home equity).

Red Flags to Avoid

Violating Texas Law: Any lender suggesting:

• Exceeding 80% LTV
• Multiple simultaneous HELOCs
• Avoiding the 12-day waiting period
• Closing at your home

These are legal violations. Work only with reputable, licensed lenders.

Excessive Fees: Avoid lenders charging:

• Application fees over $100
• Origination fees over 2% of credit line
• Junk fees without clear explanation
• Annual fees over $100

Pressure Tactics: Texas's 12-day waiting period exists to prevent high-pressure sales. Any lender pressuring immediate decisions is a red flag.

Unlicensed Lenders: Verify lenders are licensed in Texas through the Texas Department of Savings and Mortgage Lending.

Bottom Line

Fort Worth homeowners have solid HELOC options in 2026 despite Texas's restrictive regulations. Local credit unions like University Federal Credit Union and Fort Worth Community Credit Union offer competitive rates (starting around 7.75%), while Frost Bank provides strong Texas-specific expertise.

The best HELOC for you depends on priorities:

• Best rates: University FCU, Fort Worth CCU
• Texas expertise: Frost Bank
• Regional knowledge: Texans Credit Union
• Digital experience: Figure

Texas's 80% LTV limit and one-year refinance restriction mean careful planning is essential. However, these same protections prevent overleveraging and provide consumer safeguards many states lack.

Fort Worth's strong appreciation, growing economy, and position in the booming DFW metroplex create excellent conditions for homeowners. Shop multiple lenders, understand Texas's unique rules, and ensure your HELOC fits your long-term financial strategy. Fort Worth's market fundamentals are robust, making HELOCs a valuable tool when used strategically within Texas's protective framework.

Related Articles

• Home Equity Explained: What It Is and How to Build It
• Property Taxes Explained: How They Work and How to Reduce Them
• Best HELOC Rates in 2026: Where to Find the Lowest Rates