Credit Union of Texas: 2021 Home Equity Review

Courtesy of Credit Union of Texas
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Note: CUTX has suspended applications for lump-sum home equity loans.

Founded in 1931 in Dallas, Credit Union of Texas (CUTX) serves members in all 50 states but offers home equity lines of credit (HELOCs) only in the Lone Star State.

As a credit union, the lender can offer competitive interest rates and fees, and it provides discounts and benefits just for being a member.

Credit Union of Texas snapshot

Loan types offered HELOC
APR range Varies
Loan amount range HELOC: $20,000 to $750,000 on first liens; up to $300,000 on second liens
Minimum credit score required 640
Repayment terms 5-year draw period with 15-year repayment period, or 10-year draw period with 10-year repayment period
Average time to approval Not specified


A CUTX home equity loan or line of credit may be a good option for those who qualify for membership. Some of its benefits include:

  • Competitive rates: CUTX offers variable-rate and fixed-rate HELOCs starting at 4 percent APR. As of April 20, 2021, the average rate for a HELOC was 4.02 percent.
  • No fees for most HELOCs: There are no prepayment penalties, and if you opt for a HELOC up to $400,000, you won’t pay any closing costs.
  • Customer service: Credit unions tend to provide more personalized customer service than banks, primarily because they serve small geographic areas and are owned by their members.


Before signing up for a loan with Credit Union of Texas, consider some of its drawbacks:

  • Eligibility requirements: 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.
  • Average combined loan-to-value (CLTV) limit: Texas law limits the maximum CLTV you can borrow to 80 percent. With some other lenders, you could potentially borrow up to 95 percent of your home’s value between your first mortgage and a home equity product.
  • Not fully online: Even if you start the application process online, you’ll end up working with a loan specialist to complete the process. If you’re looking for more personalized service, that might not be a bad thing. But if you want your money faster, an online lender may be a better choice.

Types of fees charged

CUTX doesn’t charge any fees on HELOCs under $400,000. However, you may still need to pay for an appraisal, which isn’t considered a lender fee, if you need one for the loan application. 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 is not disclosed. Check with a loan specialist to get an idea of how much your home equity loan might cost.

Loan products offered

Credit Union of Texas offers mortgage loans, mortgage refinancing and home equity lines of credit.

With the HELOC, 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 limit of 80 percent. During the draw period, the minimum draw amount is $4,000 each time you take a 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 may be able to close in as few as 15 days.

How to qualify for a home equity loan with Credit Union of Texas

CUTX doesn’t publicly disclose a minimum credit score, but it does prefer applicants with a minimum score of 640. However, it offers quotes for all credit ranges, including for people with no credit history at all.

Borrowers must be members of CUTX to qualify for one of its home equity products. To be eligible for membership, you must meet one of the following criteria:

  • You live, work or attend an institution of higher learning in Dallas, Denton, Collin or Rockwall county.
  • 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 and not be zoned as agricultural, and it must be your primary residence. This includes houses, condos, townhomes and duplexes. The lender does not offer home equity products on mobile or manufactured homes.

View home equity rates

Tap into the value you have in your home to get the funds you need.

How to get started

You can start the application process online, over the phone or at a local branch. If you want to start online, you’ll provide a little information about yourself, including your name and contact information, your credit range and how much you’re looking to borrow. Once you submit that information, it’ll be shared with a loan specialist who will reach out to you to complete the process.

They’ll let you know what information you need to provide and set up the closing process. Once you close, there’s a three-day wait period before you can make your first draw.

If you have any questions along the way, you can call a lending specialist at (972) 301-1989 from Monday through Friday from 9 a.m. to 6 p.m. and Saturdays from 10 a.m. to 2 p.m. CT. You can also send a message through the contact page on the credit union’s website and get an email or a phone call in return.

Before you settle on the credit union, though, take some time to shop around and compare rates and other terms from several home equity lenders.

How Bankrate rates Credit Union of Texas

Overall Score 4.0
Availability 3.6
Affordability 4.3
Customer Experience 4.3

Editorial disclosure: All reviews are prepared by staff. Opinions expressed therein are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in the review is accurate as of the date of the review. Check the data at the top of this page and the lender’s website for the most current information.

Written by
Ben Luthi
Contributing writer
Ben Luthi is a personal finance and travel writer who loves helping people learn how to live life more fully. His work has appeared in several publications, including U.S. News & World Report, USA Today, Yahoo! Finance and more.
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