--- title: Home Equity Loans - Where Do I Start? description: Here's what you need to know about Lone Star Credit Union Home Equity loans and what to look for when applying! image: https://blog.lonestarcu.org/hubfs/Home%20Equity%20Loans%20Blog%20Banner.jpg --- [![Lone Star Credit Union](https://blog.lonestarcu.org/hubfs/img/lonestar-logo.png) ](http://www.lonestarcu.org) # Home Equity Loans - Where Do I Start? Posted by [Joshua Santa Cruz](https://blog.lonestarcu.org/author/joshua-santa-cruz) on 03/06/2020 - [Tweet](https://twitter.com/share) ![Home Equity Loans Blog Banner](https://blog.lonestarcu.org/hs-fs/hubfs/Home%20Equity%20Loans%20Blog%20Banner.jpg?width=900&name=Home%20Equity%20Loans%20Blog%20Banner.jpg) Whether you’re looking to make home improvements, take a dream vacation, consolidate debt, or make a large purchase, home equity loans are a popular option because they offer a large sum of cash up front. Although, there are a few steps to keep in mind before applying for a home equity loan – in which we’ve provided in this brief guide. ## What is Home Equity? Lone Star Credit Union determines equity using the full-appraised value of your home. The state of Texas allows for 80% of the value minus any existing mortgage loans to be used as collateral. Hence, home equity is what is used as a form of collateral for a financial institution to loan you a large sum of money up front. ## What do I Need for a Home Equity Loan? The home used for a home equity loan must your homestead (primary residence). The homestead must also be filed with the appraisal district in your county of residence. Lone Star Credit Union requires a, *“full-on appraisal”* for home equity loans which includes getting your home assessed by a home inspector (appointed by LSCU) to determine your home’s value. This inspection is included in the closing fees for a home equity loan. Additional documents may be required after loan approval. ## What’s the Difference between Lenders? Typically, there are usually three differences between home equity Loan lenders which include the following: 1. **Interest Rates** 1. Interest Rates vary between Financial Institutions – you can find Lone Star Credit Unions rates by going to the [rates webpage](https://www.lonestarcu.org/resources/rates/). On a side note, the interest rates from a home equity loan may be tax deductible* but its best practice to verify with a certified tax advisor for more information. 1. **Closing Costs** 1. A home equity lien is considered a mortgage loan which has additional closing costs in order to finalize the process. LSCU’s closing fees are highly competitive and typically lower than other financial institutions. 2. **Length of Approval Process** 1. While Lone Star Credit Union generally closes within 20 to 30 days, other financial institutions may take up to 2 months. ## How much of a Home Equity Loan can I get? Generally, Lone Star Credit Union offers up to 80% loan to value financing on home equity loans although it is assessed on a case-by-case basis. To estimate the Loan to Value Ratio amount of equity eligible to borrow from your home, multiply the *full-appraised value* of your home by .80 (80%). Then subtract any *existing lien balance(s)*. The remaining amount is the maximum home equity loan you could potentially obtain. **Loan to Value Ratio** *Loan to Value Ratio is determined by multiplying the full-appraised value by 80% then subtracting all liens.* | Full-Appraised Value | **$100,000** | | --- | --- | | x80% | **$80,000** | | 1st Mortgage Balance (Lien) | **$50,000** | | Equals Loan Amount Available | **$30,000** | Home equity loans from Lone Star Credit Union start at a minimum of $25,000** and offer flexible options such as fixed rate, term, and monthly payments. For lending options with minimums lower than $25,000 Lone Star Credit Union also offers [personal loans](https://www.lonestarcu.org/borrowing/personal-loans/), [personal lines of credit](https://www.lonestarcu.org/borrowing/personal-line-of-credit/), or [credit cards](https://www.lonestarcu.org/borrowing/visa-credit-card-options/). If you’d like more information on home equity loans or any of our products and services,  click the button below to email us! [![I Would Like To Apply For A Home Equity Loan](https://hubspot-no-cache-na2-prod.s3.amazonaws.com/cta/default/161612/14350222-b56b-4c98-8086-1f2a4dd4368a.png)](https://hubspot-cta-redirect-na2-prod.s3.amazonaws.com/cta/redirect/161612/14350222-b56b-4c98-8086-1f2a4dd4368a)   Stay in touch with LSCU by following our [Facebook](https://www.facebook.com/lonestarcreditunion/), [Instagram](https://www.instagram.com/lonestarcreditunion/), and [LinkedIn](https://www.linkedin.com/company/lone-star-credit-union) pages! * * ** Please check with your certified tax advisor for more information.* *** Minimum amount to be borrowed applicable as of 3/1/2020* Topics: [Home Equity](https://blog.lonestarcu.org/topic/home-equity) ### Recommended Articles ### Search by Topic - [advice for members (20)](https://blog.lonestarcu.org/topic/advice-for-members) - [Managing Your Money (17)](https://blog.lonestarcu.org/topic/managing-your-money) - [Saving Money (8)](https://blog.lonestarcu.org/topic/saving-money) - [Saving for the Future (6)](https://blog.lonestarcu.org/topic/saving-for-the-future) - [Holiday Advice (5)](https://blog.lonestarcu.org/topic/holiday-advice) - [Fraud Protection (4)](https://blog.lonestarcu.org/topic/fraud-protection) - [In the Community (2)](https://blog.lonestarcu.org/topic/in-the-community) - [Making a Big Purchase (2)](https://blog.lonestarcu.org/topic/making-a-big-purchase) - [Scams (2)](https://blog.lonestarcu.org/topic/scams) - [Home Equity (1)](https://blog.lonestarcu.org/topic/home-equity) ### LSCU News: ### Subscribe to Email Updates [Bank with Lone Star Credit Union](https://www.lonestarcu.org/member-services/become-a-member/) and benefit from a variety of financial services – including [checking](https://www.lonestarcu.org/banking/checking/) and [savings accounts](https://www.lonestarcu.org/banking/savings-certificates/savings-accounts/), [debit cards,](https://www.lonestarcu.org/banking/checking/debit-cards/) and [member discounts](https://www.lonestarcu.org/member-services/member-discounts/) – while enjoying great [rates](https://www.lonestarcu.org/resources/rates/) on [auto loans](https://www.lonestarcu.org/borrowing/auto-loans/), [credit cards](https://www.lonestarcu.org/borrowing/visa-credit-card-options/), [personal loans,](https://www.lonestarcu.org/borrowing/personal-loans/) and more.  [Dallas, TX](https://www.lonestarcu.org/about-us/locations-atms/dallas-branch/) | [Greenville, TX](https://www.lonestarcu.org/about-us/locations-atms/greenville-branch/) | [Terrell, TX ](https://www.lonestarcu.org/about-us/locations-atms/terrell-branch/) - [Disclosures](https://www.lonestarcu.org/disclosures/) - [Accessibility](https://www.lonestarcu.org/website-accessibility/) - [Complaint Notice](https://www.lonestarcu.org/media/1118/complaint-notice.pdf) - [Sitemap](https://www.lonestarcu.org/sitemap/) - 800.588.6928 - Routing Number: 311079869 © 2019 Lone Star Credit Union - All rights reserved. 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