How much of my home's equity can I actually access (given loan-to-value caps)?
Most cash-out refinances and home equity loans cap you at about 80% of your home's appraised value, minus what you still owe, but the real ceiling shifts with your loan type, occupancy, credit score, and even your income. VA cash-out loans can reach the full appraised value, second homes and investment properties are capped lower, and some HELOCs allow up to about 90% combined LTV for borrowers with strong credit. Texas caps all home loans combined at 80%, no exceptions.
Last updated July 22, 2026What is loan-to-value (LTV) and why does it cap my cash-out amount?
LTV compares your loan amount to your home's appraised value. Lenders use it to control risk: the lower the LTV, the more cushion there is if home prices drop. For a cash-out refinance, the new loan amount, existing balance plus the cash you take out, generally cannot exceed a set share of the home's value. If your home is worth $400,000 and your cap is 80%, the new loan typically tops out around $320,000.
How much you can access depends on your situation
- Standard primary-residence cash-out refinance or home equity loan: about 80% of appraised value, minus your existing balance.
- VA-guaranteed cash-out refinance, for eligible veterans and service members: can reach up to the full appraised value (100% LTV), though many lenders set their own lower overlay.
- Second home or an investment/non-owner-occupied property: a lower cap, typically 70-75%.
- HELOC held as a second loan behind your first mortgage, with strong credit (roughly 700 or higher): combined LTV can run higher, up to about 90% with some lenders; without strong credit, combined caps commonly land closer to 85%.
- Credit score near the boundary of a cash-out band: reaching the higher band, above 75% and up to the 80% ceiling, commonly requires a higher minimum score (often 680-720) than qualifying at or below 75% LTV (which can allow scores as low as 620-660 with some lenders). A lower score does not shrink your cap by rule; it can simply keep you out of the higher band.
- Home owned free and clear with little or no qualifying income: the amount you can access is capped by your income and debt-to-income ratio rather than by LTV, and can be close to zero even with full equity.
- Any home in Texas: state law caps all liens on a homestead, cash-out refinance or home equity loan alike, at 80% combined, regardless of loan type or credit score. VA and FHA cash-out refinancing is not available on a Texas homestead at all.
- Loan amount below a lender's minimum (often cited around $100,000): some lenders will not offer a home equity loan or HELOC at all, regardless of how much equity you have.
What credit score do I need to qualify?
There is no single number that applies everywhere. Conventional loans no longer have one published minimum score from Fannie Mae or Freddie Mac, but individual lenders commonly still look for 620 or higher, and closer to 680-720 to reach the top of the LTV range. FHA's official floor is as low as 500, though most lenders overlay their own requirement of roughly 580-620 for cash-out. VA loans have no government-set minimum, but lenders commonly apply their own overlay in the 580-620 range.
| Conventional cash-out, standard | 80% |
|---|---|
| Conventional cash-out, second home/investment property | 70-75% |
| FHA cash-out | 80% |
| VA cash-out | up to 100% |
| HELOC (2nd lien, outside Texas), strong credit | up to about 90% combined |
| HELOC (2nd lien, outside Texas), other borrowers | up to about 85% combined |
| Any lien on a Texas homestead* | 80% combined (all liens) |
Related questions
Sources
- https://selling-guide.fanniemae.com/sel/b2-1.3-03/cash-out-refinance-transactions
- https://singlefamily.fanniemae.com/media/20786/display
- https://sf.freddiemac.com/general/maximum-ltv-tltv-htltv-ratio-requirements-for-conforming-and-super-conforming-mortgages
- https://www.consumerfinancemonitor.com/2019/08/01/hud-reduces-maximum-ltv-for-fha-cash-out-refinance-loans
- https://www.benefits.va.gov/homeloans/documents/docs/aq42_lender_call_jan2019.pdf
- https://www.citizensbank.com/learning/how-much-can-you-borrow-with-a-heloc.aspx
- https://themortgagereports.com/129227/90-percent-cltv-helocs
- https://www.homebridge.com/products/heloc/resources/heloc-requirements
- https://www.consumerfinance.gov/ask-cfpb/what-is-the-ability-to-repay-rule-en-1787
- https://www.experian.com/blogs/ask-experian/smallest-amount-you-can-borrow-with-home-equity-loan-heloc
- https://law.justia.com/constitution/texas/sections/cn001600-005000.html
- https://nationalmortgageprofessional.com/news/fannie-mae-ending-its-hard-620-score-cutoff
Educational information only, not individualized financial or legal advice. Program details and rates change; verify current terms with a licensed loan officer before making a decision.