Credit Union of Texas: 2025 Home Equity Review

In 1931, a group of Dallas teachers founded The Credit Union of Texas (CUTX) with $65. Since then, it has grown to $2 billion in assets among its 150,000 members in all 50 states. Its home equity loan products are only available in Texas.

Credit Union of Texas home equity products offered

CUTX offers both home equity lines of credit (HELOCs) and home equity loans.

With CUTX’s fixed and variable-rate HELOCs, borrowers can access between $20,000 and $750,000 for first liens and between $20,000 and $300,000 for second liens. The line of credit has draw periods of either 5 or 10 years. During the draw period, the minimum amount is $4,000 for each withdrawal. Interest-only payments are allowed during the draw period and the loan will be re-amortized at the beginning of the repayment period.

CUTX’s home equity loans have fixed monthly payments with payment terms of up to 30 years. The minimum loan amount starts at $75,000 and has no prepayment penalties.

Texas law imposes a loan-to-value ratio (CLTV) of 80 percent on home loans. The property also must be located in Texas and be a single-family, owner-occupied home. That includes townhomes, duplexes and condos, but not mobile homes or manufactured homes. You also need to be a member of CUTX’s credit union.

Affordability: 3.2/5

• APR: CUTX doesn’t advertise the APRs for its loans on its website – not even its lowest ones. It does note floors and ceilings for its variable HELOC rates, as most lenders do.
• Fees: CUTX’s loans don’t have any prepayment penalties, so you won’t be charged if you pay off your balance early. However, borrowers may be required to pay closing costs, which include appraisal and title policy fees.

CUTX earns a 3.2 out of 5 for affordability, primarily because it doesn’t disclose the lowest available APR for its products on its website.

Availability: 2.3/5

• Loan products: CUTX offers three home equity products: home equity loans, variable-rate HELOCs and the not-so-usual fixed-rate HELOCs.
• Footprint: CUTX’s home equity loan products are restricted to Texas. So: a pretty small footprint.
• Credit score: CUTX doesn’t disclose the minimum credit score required for its loans, though most lenders require a score in the mid-600s to qualify.
• Loan minimum: CUTX’s loan minimums are on the high side: $75,000 for its home equity loan and a more manageable $20,000 for its HELOC.
• Draw requirement: There’s a minimum of $4,000 for each HELOC withdrawal.This is typical in Texas.

CUTX scores a low 2.3 out of 5 for availability primarily due to its tiny Texas-only footprint; its high loan minimums also drag down the score.

Borrower experience: 3.3/5

• Rate transparency: Borrowers have to go through the application process to find out the lowest APR they might qualify for, as CUTX doesn’t provide this information on its website. 
• Convenience: You can apply online, at a branch or have phone consultation. If you’re a CUTX member, you can make payments online. But if you want to pay by phone, you incur a $18 service fee. 
• Customer service: CUTX members can get support via branch, phone, online chat or email. 
• Fixed-rate options: CUTX has both fixed-rate home equity loans and HELOCs, giving borrowers stable monthly payments.

CUTX earns a 3.3 of 5 for borrower experience primarily because of its limited reach and lack of transparency with its APR.

CUTX gets an A+ rating from the Better Business Bureau and has been accredited since 1961.

As is typical with all home equity loans, CUTX will review your income and credit. Credit Union of Texas doesn’t disclose its minimum credit score requirements online, but most lenders require a score in the mid-600s to qualify. As Texas properties are limited to an 80 percent combined loan-value ratio of home equity financing, you will need at least 20 percent equity in your home. Property insurance is required, and you may also have to get flood insurance.

You will also need to be a member of the credit union — most Texas residents are eligible — by opening a checking account, paying a $10 fee, and meeting one of the following requirements:

• You live, work or attend school in one of 15 counties in Texas
• You’re an employee of a participating company or organization
• You’re related by blood, marriage or adoption to someone who meets one of these qualifications or is already a member

There are also requirements for your home. For starters, it must be in Texas, your primary residence and not zoned as agricultural. Eligible properties include single-family houses, condos, townhomes and duplexes. The lender doesn’t offer home equity products on mobile or manufactured homes.

You can start the application process online, over the phone or at a local branch (there are currently around 20). If you want to start online, you’ll need to provide your name and contact information, if you are applying with a co-borrower, the loan you want and how much you’re looking to borrow. If you need help, a loan specialist can walk you through the application process. Once you close, there’s a 12-day cooling-off period and an additional three days you must wait before you can access funds.

If you have any questions, you can call a loan officer at 972-301-1989, Monday through Friday, 9 a.m. to 6 p.m. CT, and Saturdays, 10 a.m. to 2 p.m. CT. The credit union’s website also has a live chat feature and contact page.