Homeowners in Texas who have built enough home equity can get a cash-out refinance loan. The Texas constitution has eased its regulations on these loans, making them even easier to use.

In Texas, a cash-out refinance loan pays off all other liens on your property, including your primary mortgage and any second mortgage loans or lines of credit you may have. The loan can be large enough to generate cash back, along with paying off all existing liens, if you have enough equity to back the loan. By law, the new mortgage must leave at least 20% of your home equity untapped.

Typically, your new cash-out refinance loan amount cannot exceed conforming loan limits. These vary by county. You’d need a non-conforming, jumbo loan to borrow more than your county’s maximum loan size. Also, you can only borrow up to 80% of your home’s value. Your lender will probably refer to this percentage as your loan-to-value ratio or LTV.

Cash-out refinance loans require a new appraisal to find your home’s current market value. You can use a Texas 50(a)(6) loan to replace your existing FHA-insured loan, assuming you meet the guidelines of your lender and the state law.

The Texas Constitution does not limit the number of cash-out refinance loans you can get on one home. But it does require you to wait at least a year (12 months) between cash-out refis. Not everyone will qualify for a cash-out refinance in Texas, but for those who do, it can be a great program.