Finance
In Texas, a home equity line of credit (HELOC) secured by the homestead can be used for:
AAny purpose the homeowner chooses
BHome improvements only
CAny purpose but is governed by strict Texas constitutional limits on homestead equity loans✓ Correct
DBusiness purposes only
Explanation
Texas HELOCs are subject to the same strict constitutional limits as home equity loans: total liens cannot exceed 80% of FMV, only one equity loan per year, mandatory waiting periods, and strong borrower protections under Article XVI § 50.
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