How much of my home's equity can I actually access (given loan-to-value caps)?
For most cash-out refinances on a home you live in, the new loan can reach about 80% of the home's value, and what you get is that amount minus what you owe and closing costs. VA cash-out loans can go higher, second homes and investment properties lower, and some HELOCs allow up to about 90% of the home's value combined for strong-credit borrowers. Your income matters too.
Last updated September 29, 2026How does loan-to-value cap the cash?
Loan-to-value (LTV) compares the loan with the home's value. For a cash-out refinance, the new loan, your current balance plus the cash you take, can't go above a set share of the value. On a $400,000 home with an 80% cap, the new loan tops out around $320,000. If you owe $200,000, that leaves about $120,000 before closing costs.
How much can I access in my situation?
It depends on your situation:
- Conventional cash-out on a home you live in: up to 80% of the value under Fannie Mae's guidelines.
- FHA cash-out: up to 80%.
- VA cash-out, for eligible veterans and service members: up to the full appraised value, though many lenders set a lower limit.
- Second home or investment property: lower, typically 70% to 75%.
- HELOC behind your first mortgage: some lenders allow up to about 90% combined for strong credit; 85% is common otherwise.
- Paid-off home with little income: your debt-to-income ratio, not your equity, may be what limits you, sometimes to very little.
- A homestead in Texas: the state constitution limits a cash-out or home equity loan to 80% of the home's value, all liens combined, and a VA cash-out refinance isn't allowed there (Texas Attorney General Opinion KP-0183).
What credit score do I need?
It depends on the program and the lender. Lenders commonly look for 620 or higher on a conventional cash-out, and a higher score can be needed to reach the top of the loan-to-value range. FHA's program floor is 500, though lenders often set their own higher minimum for cash-out. VA sets no minimum score itself, and lenders set their own.
| Conventional cash-out, home you live in | 80% |
|---|---|
| Conventional cash-out, second home or investment property | 70% to 75% |
| FHA cash-out | 80% |
| VA cash-out | Up to 100%, often lower by lender |
| HELOC, strong credit | Up to about 90% combined, with some lenders |
| HELOC, other borrowers | Commonly about 85% combined |
| Texas homestead cash-out or home equity loan | 80% combined |
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
- https://www.texasattorneygeneral.gov/sites/default/files/opinion-files/opinion/2018/kp0183.pdf
Sourced from licensed loan officers and brokers in the FreeRateUpdate network.
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.