Where TAG Offers HELOCs
TAG Lending Group is licensed as a mortgage lender in Florida, Georgia, Michigan, New Mexico, Ohio, South Carolina, Tennessee and Texas, and as a mortgage broker only in Connecticut, New Jersey and Pennsylvania. HELOC program availability, CLTV limits and terms vary by state.
TX
Texas Homestead HELOCs Follow Different Rules
- Total debt secured by the homestead, including the HELOC, can't exceed 80% of the home's fair market value.
- Each advance must be at least $4,000, and advances can't be taken with a credit card, debit card or unsolicited preprinted check.
- Fees can be charged only when the line is established, not on later advances.
- Texas home equity rules also include a 12-day waiting period after the required notice, a 3-day right of rescission, and a limit of one home equity loan on the homestead at a time.
HELOC FAQs
What is a HELOC?
A home equity line of credit (HELOC) is a revolving line of credit secured by your home. You draw funds as needed during the draw period, repay, and borrow again, paying interest only on the amount you use, while your existing first mortgage stays in place.
How much can I borrow with a HELOC?
Multiply your home's value by the program's combined loan-to-value (CLTV) limit, then subtract all existing mortgage balances. TAG HELOC programs allow up to 90% CLTV on eligible primary residences, with lines generally from $25,000 to $500,000. Texas homestead HELOCs are capped at 80% CLTV.
What credit score do I need for a HELOC?
TAG HELOC programs are available for qualified borrowers with credit scores from 640. Most piggyback HELOC programs used to buy a home require 680 or higher.
What is a fixed-rate HELOC?
A fixed-rate HELOC lets you access home equity with a fixed rate on the amount you draw, so payments on that balance are predictable. It can be an alternative to a cash-out refinance when you want to keep a favorable rate on your first mortgage.
What is a piggyback loan, and can I use a HELOC to buy a home?
Yes. A piggyback loan is a second mortgage, often a HELOC, that closes at the same time as your first mortgage when you buy a home. The first mortgage stays at or below 80% of the home's value, the second lien covers part of the remaining price, and your down payment covers the rest.
Does a piggyback HELOC help avoid PMI?
It can. Private mortgage insurance is typically required when a conventional first mortgage is above 80% loan-to-value. Keeping the first mortgage at or below 80% with a piggyback second removes the PMI requirement on the first loan.
Is HELOC interest tax-deductible?
Only when the funds are used to buy, build or substantially improve the home that secures the HELOC, and only if you itemize. The deduction is subject to the $750,000 combined mortgage debt limit, which the One Big Beautiful Bill Act made permanent. Interest on funds used for other purposes, such as paying off credit cards, isn't deductible. Consult a tax advisor.
Can I get a HELOC on a second home or investment property?
Yes, TAG HELOC programs are available for qualified second homes and investment properties. CLTV limits and requirements are typically stricter than for a primary residence.
Can a lender freeze or reduce my HELOC?
Yes, in limited situations allowed under federal rules and your HELOC agreement, such as a significant decline in your home's value or a material change in your financial circumstances. Review your agreement for the specific conditions.
Can I cancel a HELOC after closing?
For a HELOC on your principal residence that isn't used to buy the home, federal law gives you three business days after closing to cancel without penalty. This right of rescission doesn't apply to a piggyback HELOC used to purchase the home.
Which states does TAG Lending Group offer HELOCs in?
TAG Lending Group is licensed as a mortgage lender in Florida, Georgia, Michigan, New Mexico, Ohio, South Carolina, Tennessee and Texas, and as a mortgage broker only in Connecticut, New Jersey and Pennsylvania. Program availability and terms vary by state.
Should I choose a HELOC or a cash-out refinance?
A HELOC keeps your current first mortgage in place and lets you draw only what you need, which can make sense when your existing rate is favorable or costs will come in stages. A cash-out refinance replaces your first mortgage with a new, larger loan and may fit better if a new rate or term also benefits you.
Ready to Use Your HELOC Strategy?
Connect with a loan officer to review your home value, current mortgage and goals, and find the right standard, fixed-rate or piggyback HELOC for your scenario.
Not a commitment to lend. All loans are subject to credit, income, property and underwriting approval, and not all applicants will qualify. Programs, CLTV limits, credit score requirements, line amounts and terms vary by program, occupancy and state and may change without notice. Most HELOCs have variable rates, so the rate and payment can increase. Property insurance is required, and flood insurance may be required. Consult a tax advisor regarding the deductibility of interest. Piggyback financing: down payment, maximum combined loan-to-value and mortgage insurance requirements vary by program; terms of the first mortgage and second lien are disclosed separately. HELOC programs are not available in all states. Texas home equity loans and lines of credit are subject to Article XVI, Section 50(a)(6) and 50(t) of the Texas Constitution. TAG Lending Group is a mortgage broker only, not a mortgage lender or correspondent mortgage lender, in CT, NJ and PA. TAG Lending Group, LLC | NMLS #2329372 | NMLS Consumer Access | Equal Housing Opportunity.