• Benefits
  • Application Process
  • FAQs


Your biggest investment is your home, so why not put it to good use? With a JSC FCU Home Equity Loan, you can borrow against the equity in your home to get a low interest rate loan with easy terms you can live with. 

JSC FCU Home Equity Loans feature:

  • Low-competitive rates
  • Low closing cost (please see FAQs for a list of closing cost) 
  • Terms from 5 years up to 15 years for 1st Lien Home Improvement Loans
  • Terms from 5 years up to 10 years for 2nd Lien Home Improvement Loans
  • Loan amount can be up to 80% of your home's appraised value (less outstanding liens)
  • No loan application fee
  • No prepayment penalties

Application Process


To correctly submit an application, you will need to provide the Credit Union a signed original of the following:
(Provided in application package)


To help expedite the process, please provide the following:

  • Proof of Income
  • Proof of Homeowners Insurance and Windstorm/Flood Insurance (if applicable)
  • Deed of Trust
  • Final bid/contract (provided by a licensed contractor)

Credit and income are reviewed - can take up to three business days. Once Pre-qualified, we will provide you with a Loan Estimate that outlines: rate, term, payment and closing costs.


If you decide to proceed with the loan, you will sign and return the Loan Estimate acceptance letter. We then will proceed by ordering the following reports on your behalf: (fees apply)

  • Property Report
  • Flood Certification
  • Automated Valuation Module 

A Formal Appraisal may also be required when:

  • When equity is insufficient
  • At the discretion of the Credit Union

Next, we will send you a second group of disclosures that must be signed and returned. These include:

  • The FACT Act Notice
  • The Standard Flood Hazard Determination Form
  • Truth and Lending Early Disclosure Statement – must be signed by applicant seven business days before closing

At this time you will be contacted to set an appointment for closing. The following document must be signed at least 3 business days before closing:

  • Closing Disclosure 
  • Deposit/Prepaid Acknowledgment

You will also receive a complete loan package for you to review prior to closing.

Loan Closing:

At this point you and your loan officer have scheduled a closing appointment at a JSC Branch and a time convenient for you. For documents needing a Contractor’s signature; the contractor may sign anytime between closing and funding. (The State requires a minimum of 3 days before funding) This is a good time to contact your contractor to make him aware of your closing date.


Documents that will be provided at your closing appointment:

  • A copy of the Final bid/contract
  • Note & Truth-in-Lending Disclosure
  • Texas Mortgage Fraud Notice
  • Mechanic’s Lien Contract
  • Affidavit of Debits and Liens
  • Document Correction Agreement
  • Loan Agreement Notice
  • Disclosure regarding review of loan documents
  • Closing Disclosure
  • Letter to the Insurance Company
  • Supplemental Mortgage Insurance Provision
  • Notice of Right to Cancel Cover Sheet
  • Notice of (3 day) Right to Cancel -No funds can be disbursed, nor can work begin until 3 days has passed
  • Draw Request

For an explanation of these documents please refer to the Explanation of Home Equity Closing Documents included with this package.

After Closing:

After your loan closes, you have three business days to cancel your loan application. If after three business days you still wish to continue with the process you will return to the Credit Union the Statement of Non-cancellation (provided at closing) indicating that you do not wish to cancel your loan. Loan proceeds cannot be disbursed nor can work begin prior to the receipt of this notice by the Credit Union and the required three days has elapsed.


If you need further assistance, please contact a mortgage specialist at 281-488-7070.


What is a Home Equity Loan?

A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. These loans are useful to finance major expenses such as home repairs, medical bills, debt consolidation, or college education. A home equity loan creates a lien against the borrower's house.

What is the maximum time that you can finance a Home equity loan for?

The maximum term you can finance a Home equity loan for is 15 years (First lien) and 10 years (second lien).

How is the interest rate determined?

The interest rate varies depending upon if the loan will become first or second lien, and how long the term of the loan is for i.e. 5yr, 10yr, and 15 yr.

How long does the process take to finalize a Home equity loan?

Certain time restrictions are mandated by Texas Law and cannot be shortened. The applicant must wait a minimum of 12 calendar days prior to the closing date, then an additional 3 business days must pass before funds can be distributed. Therefore, the minimum closing time of this loan is 17 calendar days. However, the loan could take longer due to reasons outside the norm. (e.g., the timing of receipt of signed documents, legal disposition of the property, unpaid taxes, unreleased lien, timing of formal appraisal or title commitment)

Is a spouse required to be on the loan?

No, the spouse is not required to be on the deed of trust.

Can a home owner have more than one Home equity loan?

Texas Law allows one Home equity loan at a time.

Does the property have to be homestead exempt?

Property used to secure a Texas Home equity loan must be the borrower's homestead.

What are the closing costs associated with a Home equity loan?

The standard cost for closing a Home equity loan is $203.00-$217.00. Per State law, all fees associated with this loan cannot exceed 3% of the original principle loan amount.

The break-down of these fees are as follows:

  • Property report $140.00.
  • Flood certification $15.00.
  • Recording fees $48.00 to $62.00.
  • Appraisal
  • Most often we use the tax appraisal (no cost). However, if a formal appraisal is required
  • The cost ranges from $400.00 - $500.00.
  • Title commitment fees (determined by the title company)
How much can be borrowed for a Home equity loan?

The amount borrowed for a Home equity loan is 80% of the appraised market value minus any existing liens on the property. For example, on a property with a fair market value of $100,000, the maximum amount of debt against the property permitted by is $80,000. Assuming there is an existing debt of $30,000, the maximum amount of the Home equity loan can be is $50,000.

Can an existing appraisal be used to determine property value?

At the discretion of the Credit Union, an existing appraisal may be used, granted it is no older than one year and was prepared for another lender.

Is there a prepayment penalty on a Home equity loan?

No. A lender may not charge a penalty to a borrower for paying all or a portion of a home equity loan early.

Is a spouse required to be on the loan?

No, the spouse is not required to be on the deed of trust.

Can I refinance my Home Equity Loan?

 A Home Equity loan is only eligible for a refinance every twelve months. If it hs been twelve months since you originated you Home Equity Loan, then you are eligible to refinance.

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