If you’ve been a homeowner in Corpus Christi for a while, you’ve probably built up some equity in your property. Coastal cities like this have seen steady growth, and homeowners are sitting on more equity than they might realize. That equity is money you’ve built over time, through payments and care, and sometimes it makes sense to put it to work.
That’s where a cash-out refinance loan comes in. It’s a way to tap into your home’s value by replacing your current mortgage with a new one for a higher amount, letting you take the difference in cash. In Texas, this process is more unique because of specific state laws, especially what’s known as a Section 50(a)(6) loan.
A cash-out refinance replaces your current mortgage with a new, larger loan. The difference between what you owed and what you’re borrowing now? That comes to you in cash. People use this money for all sorts of things: home renovations, paying off high-interest debt, covering college tuition, or even starting a business.
To illustrate, say you owe $150,000 on a home that’s worth $300,000. You could refinance for $200,000, pay off the original loan, and pocket $50,000 (minus closing costs). You’re turning home equity into liquid cash while still keeping your home.
This isn’t free money, and it’s not right for everyone. You’re increasing your loan balance, which means your monthly payments go up, or you might extend the length of your mortgage. But for homeowners who need access to a chunk of money and want a lower interest rate than credit cards or personal loans offer, it can make a lot of sense.
Texas is protective of homeowners, so the state’s constitution includes strict rules about borrowing against your home’s equity. Section 50(a)(6), or “Texas (a)(6) loans” as lenders call it, basically sets the ground rules for any home equity loan or cash-out refinance done here.
A Section 50(a)(6) cash-out refinance lets you borrow money based on the equity you’ve built, while also ensuring you don’t overextend yourself. It’s designed to keep Texans safe from risky lending practices that once hurt homeowners in other states.
Before 1997, cash-out refinancing wasn’t even legal in Texas for homestead properties. The state wanted to protect people from potentially losing their homes due to excessive borrowing. When they finally allowed it, they built in serious safeguards. The 50(a)(6) program is the result of that careful approach.
The property needs to be your primary residence. We're talking about your homestead, the place where you actually live. Investment properties and second homes don't qualify under this program.
The new loan should not exceed 80 percent of your home's appraised value, which means you keep at least 20 percent equity after closing.
A score of 620 or higher is commonly expected, and higher scores can improve pricing.
Keeping your monthly obligations near or below 43 percent of your gross income shows you can handle the new payment without strain.
The state also sets timing guardrails, typically six months since you opened the current loan and twelve months since any prior cash out. You will receive a Texas 12-day notice before closing, and after you sign, you have a three-day right of rescission, which is a short window to change your mind.
The law requires specific disclosures and a formal closing at an authorized office, no mailing documents or remote signings.
Because of state law, FHA and VA cash-out options are not available for Texas homesteads, so most homeowners use conventional programs that comply with 50(a)(6).
When used thoughtfully, a cash-out refinance can be one of the smartest financial tools available to a homeowner. It gives you access to a large sum of money, usually at a lower rate than credit cards or personal loans.
Some of the benefits of a cash-out refinance include:
It’s not for everyone, though. If your goal is to save for short-term needs or you’re unsure about staying in your home for several more years, talk through your options before making a decision. The best refinance is one that genuinely fits your lifestyle and goals.
Q: Can I do a cash-out refinance if I already have a home equity loan?
A: Not under Texas law. If you already have a home equity loan (or any (a)(6) lien), you’ll need to refinance that loan and combine everything into one new (a)(6) cash-out refinance.
Q: How much cash could I access in Corpus Christi?
A: Texas homestead cash-outs are generally capped at 80 percent of appraised value. Subtract your current payoff and closing costs from that number to estimate what may come back to you at funding.
Q: How long does the refinance process take?
A: On average, most refinances in Corpus Christi close within 30 to 45 days, depending on appraisal turn times and title work.
Q: How is a cash-out refinance different from a home equity line of credit (HELOC)?
A: A cash-out refinance replaces your entire existing mortgage, while a HELOC acts more like a credit card secured by your home. In Texas, HELOCs also fall under (a)(6), but refinancing typically offers more stable, predictable payments.
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Ready to explore your options and see how much equity you could access? Our team specializes in Texas 50(a)(6) cash-out refinance loans, and we’re here to answer your questions.
Give us a call at (877) 280-4833 to speak with a mortgage specialist who can walk you through the process and help you determine if a cash-out refinance is the right move for your financial situation.
