Credit Union of Texas: 2024 Home Equity Review

Benefits

• There are no fees on most HELOCs, nor prepayment penalties, and if you opt for a HELOC up to $400,000, you won’t pay any closing costs.
• Credit unions tend to provide more personalized customer service than banks, primarily because they serve smaller geographic areas and are owned by their members.

Drawbacks

• You have to be a member of CUTX before you can apply for a home equity product. The lender provides lines of credit only on single-family, owner-occupied homes in Texas.
• Texas law limits the maximum combined loan-to-value (CLTV) ratio you can borrow to 80 percent. With some other home equity lenders, you could potentially borrow up to 95 percent of your home’s value between your first mortgage and a home equity product.

Home equity loan products offered

Credit Union of Texas offers home equity lines of credit (HELOCs) and home equity loans (the latter have been suspended as of this review).

With the HELOC from CUTX, you can borrow between $20,000 and $750,000 for first liens and between $20,000 and $300,000 for second liens. Remember, though, that your HELOC amount also depends on how much equity you have in your home, as there’s a CLTV ratio limit of 80 percent. During the draw period, the minimum amount is $4,000 for each withdrawal.

Credit Union of Texas also offers a “Fast Track Loan,” which is essentially a fixed-rate HELOC designed to refinance a home loan. This product has a 10-year draw period, and you might be able to close in as few as 15 days.

Types of fees charged

Credit Union of Texas doesn’t charge any fees on HELOCs under $400,000. However, you might still need to pay for an appraisal, which isn’t considered a lender fee. There’s also no prepayment penalty, so you won’t be on the hook for a fee if you pay off your balance early.

While there are fees on the lender’s home equity loan, the exact amount isn’t disclosed on the credit union’s website. Check with a loan officer to get an idea of how much your home equity loan might cost.

How to qualify for a HELOC with Credit Union of Texas

Credit Union of Texas doesn’t disclose its minimum credit score requirements online, but it does prefer applicants with a score of at least 640. However, it offers quotes for all credit ranges, including for borrowers with no credit history.

• You must be a member of CUTX to qualify for one of its home equity products. The criteria for membership include:
• You live, work or attend an institution of higher learning in Dallas, Denton, Collin or Rockwall counties.
• You live or work in select areas of Grayson, Fannin, Ellis, Tarrant and Hunt counties.
• You’re a member of a school-related association or organization created to service or assist public or private schools.
• 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. This can include single-family houses, condos, townhomes and duplexes. The lender doesn’t offer home equity products on mobile or manufactured homes.

How to apply with Credit Union of Texas

You can start the application process online, over the phone or at a local branch. If you want to start online, you’ll provide your name and contact information, your credit range and how much you’re looking to borrow. A loan officer will then reach out to you to complete the process. Once you close, there’s a three-day wait period before you can make your first draw.

If you have any questions, you can call a loan officer at 972-263-9497 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.

How Bankrate scored Credit Union of Texas

• Methodology

  To determine a home equity lender's Bankrate Score, Bankrate rates lenders on a scale of one (1) to five (5) stars — with five (5) the highest rating — based on a variety of factors relating to the lender's products and services. To assign our ratings, we assessed each mortgage lender across three core areas:

  • Affordability: Annual percentage rate (APR) - 80%; introductory APR - 20%
  • Availability: Licensing - 50%; credit score - 20%; loan minimum - 10%; draw requirement - 10%; loan products - 10% 
  • Borrower experience: Rate transparency - 45%; convenience - 35%; customer service - 10%; fixed-rate options - 10%

  Learn more about our methodology.