Credit Union of Texas
- HELOC, home equity loans
- Starting at 3%
- N/A
- Visit a local branch in Texas or speak with a home equity specialist by calling 972-301-1989
The Credit Union of Texas was founded by a group of teachers in Dallas in 1931 and now has more than $2 billion in assets and more than 140,000 members throughout the country.
Although the Credit Union of Texas offers banking services to people in all 50 states, it only provides home equity loans and home equity lines of credit, or HELOCs, to homeowners in Texas and mainly serves the Dallas-Fort Worth area. It has just one other branch located in Gilmer, east of Dallas. Its home equity loans and HELOCs have competitive rates and minimal fees, making the Credit Union of Texas an attractive option for borrowers.
Credit Union of Texas: At a glance
| Types of loans offered | Home equity loan | HELOC |
|---|---|---|
| APR range | Starting at 3% | Starting at 3% |
| Loan amount | Starting at $75,000 | Starting at $75,000 |
| Credit score minimum | N/A | N/A |
| Repayment terms | Up to 30 years | 10-year draw, up to 30 years’ repayment |
| Average time for approval | N/A | N/A |
The Credit Union of Texas is best suited for homeowners who need a high minimum loan amount, as its loans start at $75,000. Homeowners must live in Texas to qualify for the credit union’s home equity loans. Only single-family properties that serve as your primary residence are eligible to borrow against. Mobile homes and manufactured homes don’t qualify for Credit Union of Texas HELOCs.
In Texas, a homeowner can legally borrow up to 80% of their home’s loan-to-value, or LTV, ratio, which is simply a calculation of how much you still owe on your house compared with the current appraised value of the property.
Pros and cons
Pros
Minimal fees: There are no prepayment penalties or early closure fees, and no closing costs on HELOCs or loans of up to $400,000.
Competitive interest rates: The credit union offers some of the lowest rates available to homeowners in Texas, which can save them thousands of dollars over the lifetime of their loans.
Long repayment term: You can repay your loan over a period of up to 30 years, which can help keep your monthly payments low and gives you flexibility over time.
Fixed-rate HELOCs: HELOCs have variable interest rates that go up and down depending what’s happening with the economy and market conditions, but the Credit Union of Texas also offers a fixed-rate HELOC, which can provide valuable savings in a rising interest rate environment such as the one we’re in today.
Cons
Limited availability: As its name implies, home equity loans from the credit union are only available in the Lone Star State, so you can’t access its programs if you’re not a resident of Texas. It only has one physical branch outside of the Dallas-Fort Worth region, too.
High minimum loan amount: $75,000 is a significant loan and isn’t worth the additional interest you’ll accrue if you take out more money than what you need to cover your home improvement project or other life expenses.
Doesn’t disclose credit requirements: You’ll have to apply without knowing if your credit score is acceptable. When a lender doesn’t disclose its credit minimums, it can mean that the lender may be more flexible when approving borrowers with lower scores.
Home equity loan options
The credit union offers a home equity loan and both variable-rate and fixed-rate HELOCs, in addition to various types of mortgages and refinancing options. You can only have one home equity loan open with the credit union at a time.
Fees
There are no closing costs on loans of up to $400,000 with Credit Union of Texas, but if your property needs an appraisal, or a policy of title insurance is required, you’ll have to pay those fees. HELOCs have no closing costs as well. Credit Union of Texas also doesn’t charge homeowners any prepayment penalties or early closure fees.
How to qualify
Your home must be a single-family primary residence in order to qualify for a home equity loan with Credit Union of Texas. It doesn’t disclose its minimum credit score requirements, but the higher your score, the better your chances are that you’ll be approved for a loan. Most lenders want to see a debt-to-income ratio of 36% or less, but no more than 43% to make sure you can comfortably afford a second monthly mortgage payment. Borrowers are also required to have property and flood insurance, where applicable.
Getting started
You have to qualify for your home equity loan just as you did for your first mortgage, so you’ll need to get all of your personal and financial documentation ready for the lender to review. You’ll need to provide proof of income and stable employment through documents such as your Form W-2 and tax returns, as well as any paperwork related to your current mortgage. In addition, you’ll need a government-issued ID such as a state driver’s license or social security card.
Customer service
Homeowners can visit a local branch in Texas or speak with a home equity specialist by calling 972-301-1989 from Monday through Friday 8 a.m. to 5 p.m. CT and Saturday 9 a.m. to 1 p.m. CT. For general inquiries, members can call 972-263-9497 or 800-314-3828.
