Home equity loans fall under the provisions of Section 50(a)(6), Article XVI, of the Texas Constitution. A home equity loan can be for any legal purpose which uses the equity (the difference between the home’s value and any outstanding debts against the home) in a member’s home for collateral.
For home equity lending, Texas law restricts the total amount of all loans secured by the homestead to a maximum of 80% of the home’s value.
Texas home equity loans offered by Brazos Star Credit Union are closed end loan with substantially equal payments over a fixed period of time.
The property used for collateral must be a single-family, owner-occupied homestead property, located within the five-county region of the credit union’s field of membership.
Qualifying properties are defined as either urban or rural.
Urban properties consist of not more than 10 acres of land with any improvements contained thereon, within the limits of a municipality or it’s extraterritorial jurisdiction, or a platted subdivision; AND served by police protection, paid or volunteer fire protection, and at least three of the following services provided by a municipality or under contract to a municipality: electric, natural gas, sewer, storm sewer, or water. Rural property shall consist of not more than 200 acres for a family (100 acres for a single, adult person not otherwise entitled to a homestead), with the improvements thereon.
The following properties are not eligible for a Home Equity Loan: duplexes, investment properties and mobile homes.
Brazos Star will pay all standard closing costs for new home equity loans under $150,000 closed at a credit union branch. These costs include: title search, flood determination, credit report, AVM (Automated Valuation Model) report, and county filing fees. If necessary, additional fees for appraisal, survey, and title company closing costs will be the responsibility of the borrower. Refinances of existing Brazos Star Credit Union Home Equity loans are subject to a $300 refinance fee. Estimated costs will be disclosed upon receipt of application. Normal credit qualifying is required; rates, terms and fees may vary based on credit qualifications.
Loan rates are expressed as Annual Percentage Rate (A.P.R.) Rates, fees and terms will vary according to the credit worthiness of each applicant, the amount borrowed and the length of the loan.
Rates and terms are subject to change without notice. Rates and terms for loans above $200,000 may vary and will require board approval. For current rates and terms please contact the credit union or visit our website at https://www.brazosstarcu.com.