Credit Union of Texas: 2020 Home Equity Review

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

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

Credit Union of Texas snapshot

Loan types offered Home equity loan, HELOC
APR range Starting at 4.25%
Loan amount range Home equity loan: $25,000 to $250,000
HELOC: $25,000 to $750,000
Minimum credit score required Not specified
Repayment terms Home equity loan: Up to 30 years
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: While CUTX does not specify rates for its home equity loans, it offers variable-rate HELOCs starting at 4.25 percent APR. As of May 15, 2020, the average rate for HELOCs is 4.95 percent.
  • No fees for most HELOCs: CUTX does charge fees for its home equity loans, but the exact amount depends on the loan. However, if you opt for a HELOC under $400,000, you won’t pay any lender fees at all, and neither the HELOCs nor home equity loans charge prepayment penalties.
  • 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 also provides loans and lines of credit only on homes based in Texas.
  • Average 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 products. If you’re looking for a home equity loan, borrowing amounts can range from $25,000 to $250,000 for first liens. Repayment terms can extend up to 30 years.

With the HELOC, you can borrow between $25,000 and $750,000 for first liens and between $25,000 and $300,000 for second liens. Remember, though, that your loan or 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 as a way 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

While CUTX doesn’t publicly disclose a minimum credit score, it offers quotes for all credit ranges, including for people with no credit history at all.

Borrowers must be a member 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, not be zoned as agricultural and be your primary residence. That 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 4.1
Availability 3.6
Affordability 4.4
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.