Texas 50(a)(6) vs 50(f)(2) Loans: Cash-Out & Refinance Explained

July 30, 2025

If you're a homeowner exploring Texas home loans , especially looking to tap into equity or refinance, you may have come across the terms Texas 50(a)(6) and 50(f)(2) . These refer to specific loan types governed by the Texas Constitution . As a licensed Texas mortgage broker , we’re here to clarify what these loans are and help you decide which one aligns with your financial situation.

What Is a Texas 50(a)(6) Loan?

A Texas 50(a)(6) loan is a type of cash-out refinance. It allows you to replace your current mortgage while borrowing against the equity in your home.
Key Benefits of 50(a)(6) Loans:
  • Borrow up to 80% of your home’s appraised market value
  • Use funds for renovations, debt payoff, or other personal financial goals
  • Protected by Texas-specific lending regulations

These loans apply only to primary residences, and a mandatory 12-day waiting period applies before you can close.

What Is a Texas 50(f)(2) Loan?

A Texas 50(f)(2) loan allows homeowners to refinance an existing 50(a)(6) loan without taking out additional cash. This option is often chosen to secure a lower interest rate or better loan terms.
Important 50(f)(2) Rules: 
  • A minimum of 12 months must pass after the original 50(a)(6) closing
  • No cash-out is permitted with this refinance
  • Helps borrowers move into more flexible or lower-rate loan programs

If you're applying for an FHA mortgage in Texas or consulting a VA loans Texas broker , be aware that FHA and VA loans are not eligible for Texas 50(a)(6) cash-out refinances . These government-backed programs do not permit home equity withdrawals under this constitutional provision.
However, you can refinance an existing 50(a)(6) loan into an FHA or VA loan using a Texas 50(f)(2) refinance, provided no additional cash is taken out. This is a practical option for veterans and first-time homebuyers aiming to reduce their rate after a previous equity loan.
If you are unsure whether your current mortgage qualifies, speak with an experienced VA loans Texas broker or FHA lending advisor to explore your eligibility.

Whether you are considering a 50(a)(6) cash-out or a 50(f)(2) refinance, navigating the loan landscape in Texas requires a clear understanding of state-specific rules. The professionals at Bonelli Financial Group are here to provide insight and support at every stage.
  • Personalized loan guidance
  • Access to top mortgage lenders in Texas
  • Comprehensive knowledge of equity lending and refinance laws

Call Bonelli Financial Group at 1-800-BONELLI or click here to contact us to schedule a free consultation.

The right mortgage broker in Texas can help you avoid delays, save on interest, and select the most suitable loan structure. At Bonelli Financial Group , we assist borrowers in understanding and executing 50(a)(6) and 50(f)(2) loans with full transparency.
Why We’re Considered One of the Best Mortgage Broker in Texas:
  • Deep experience in residential lending and equity-based refinance
  • Knowledge of Texas-specific mortgage restrictions
  • Access to a network of top mortgage lenders Texas borrowers trust

If you are considering refinancing or tapping into your home equity, it is important to compare mortgage rates in Texas today . Rates will vary depending on credit score, loan-to-value ratio, and loan program.  We work with a wide range of top mortgage lenders Texas residents rely on, providing rate quotes tailored to your needs. Whether you are interested in conventional financing or an FHA mortgage Texas borrowers can use, we will help you compare your options effectively.

Frequently Asked Questions (FAQ)

Texas home loans that fall under sections 50(a)(6) and 50(f)(2) require careful planning. By understanding the structure and limits of each loan type, you can make informed decisions and protect your home’s equity.
If you are ready to refinance or are considering a home equity loan, working with an experienced Texas mortgage broker can save time, reduce costs, and ensure compliance with state law.
If you are ready to move forward, Bonelli Financial Group is here to help. We provide straightforward advice, access to competitive rates, and hands-on support from application to closing.
Contact us now to schedule a personalized loan review.

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