How much you can refinance your house for comes down to a single calculation: your home’s current appraised value multiplied by the maximum loan-to-value ratio your loan type allows, minus what you still owe on the current mortgage. For a conventional cash-out refinance on a primary home, the LTV cap is 80%. Rate-and-term refinances that don’t put cash in your pocket can reach 97% on a fixed-rate conventional loan, 97.75% on an FHA loan, and 100% on a VA loan. Those percentages set the ceiling; your equity, credit, and income decide how close to it you actually get.
Maximum LTV by Loan Type
The LTV cap is the single biggest lever. It shifts based on the loan program and on whether you’re taking cash out.
Conventional Loans
A conventional cash-out refinance on a primary residence is capped at 80% LTV for both fixed-rate and adjustable-rate mortgages. On a home appraised at $500,000, the largest new loan balance possible is $400,000. If you don’t want cash back and only want to change your rate or term (a “limited cash-out refinance”), the ceiling rises to 97% on a fixed-rate loan and 95% on an ARM for a single-unit primary residence.1Fannie Mae. Eligibility Matrix Freddie Mac uses the same 80% cap for cash-out refinances on a one-unit primary residence.2Freddie Mac. Guide Section 4203.1
FHA Loans
FHA rate-and-term refinances allow up to 97.75% LTV when an appraisal is used, which gives borrowers with thin equity a route conventional loans don’t.3HUD. Loan-to-Value and Combined Loan-to-Value Mortgage Amount Calculation Comparison Criteria FHA cash-out refinances cap at 80%, matching the conventional cash-out ceiling. FHA also runs a streamline refinance for existing FHA borrowers that can skip the appraisal entirely, though cash back is limited to $500 or less.
VA Loans
VA-backed cash-out refinances can reach 100% LTV, the most generous limit on any refinance product.4Veterans Benefits Administration. Circular 26-19-05 – VA-Guaranteed Cash-Out Refinancing Home Loans The VA charges a funding fee that varies by whether it’s a first or subsequent use, and that fee is typically rolled into the balance. The total loan amount still can’t exceed 100% of the appraised value.5Veterans Affairs. Cash-Out Refinance Loan VA loans require no private mortgage insurance at any LTV, which lowers the monthly payment compared to a conventional loan at the same ratio.
USDA Loans
USDA offers a streamlined-assist refinance for existing USDA borrowers. It doesn’t require a new appraisal or a debt-to-income calculation, and the new balance can include the current payoff, closing costs, and the upfront guarantee fee.6USDA Rural Development. Refinance Types Overview The new payment must save at least $50 per month. USDA does not offer cash-out refinancing, so tapping equity through this program isn’t an option.
Investment Properties
Non-owner-occupied properties see tighter caps. Fannie Mae allows up to 75% LTV on both limited cash-out and cash-out refinances for a single-unit investment property. For two- to four-unit investment properties, the cash-out ceiling drops to 70% LTV.1Fannie Mae. Eligibility Matrix
The Dollar Ceiling on Conforming Loans
Even when the LTV math permits a larger loan, there’s an absolute dollar limit on conforming mortgages. For 2026, the Federal Housing Finance Agency set the baseline conforming loan limit at $832,750 for a single-family home in most of the country, and $1,249,125 in designated high-cost areas.7FHFA. FHFA Announces Conforming Loan Limit Values for 2026 Above those numbers, you’re into jumbo territory, which typically means a larger equity cushion, stronger credit, and different pricing.
Running the Numbers on Your House
The formula is straightforward. Take your home’s current appraised value, multiply by the maximum LTV for your loan type, then subtract your remaining mortgage balance. The result is how much cash you could potentially pull out.
Take a home appraised at $400,000 with a conventional cash-out refinance capped at 80% LTV. That allows a new loan of up to $320,000. If you still owe $200,000, the difference is $120,000. But you won’t walk away with all of it, because closing costs come off the top.
Closing Costs and PMI Shrink the Real Number
Refinance closing costs generally run 2% to 6% of the new loan amount. That covers the origination fee, title insurance, appraisal, and recording fees. On a $320,000 loan, that’s $6,400 to $19,200. Many borrowers roll these costs into the balance to avoid writing a check at closing, but doing so means paying interest on those fees for the life of the loan and reduces the net cash received. A home appraisal typically costs $300 to $500, and more in expensive metro areas or for unusual properties. The lender orders it through an independent appraisal management company, and you pay whether the loan closes or not.
If your new conventional loan exceeds 80% LTV, the lender will require private mortgage insurance, which adds roughly 0.5% to 1% of the loan balance per year to the payment. Under the Homeowners Protection Act, you can request PMI cancellation once the balance reaches 80% of the home’s value at the time of the refinance, and the servicer must automatically terminate it at 78%.8FDIC. V-5 Homeowners Protection Act FHA loans handle this differently: on most current FHA loans, the mortgage insurance premium lasts the life of the loan regardless of equity. VA loans carry no mortgage insurance. Borrowers with an FHA loan who have built significant equity sometimes refinance into a conventional loan specifically to drop that permanent insurance.
How the Appraisal Sets the Ceiling
The appraised value is the denominator in every LTV calculation, so a low appraisal shrinks the loan you can get. Appraisers pull recent sales of comparable homes, evaluate the condition of the structure, and account for upgrades or deferred maintenance. Lenders must use independent appraisal management companies to pick the appraiser, which keeps borrowers and loan officers from steering the result.
If the number comes in low, the most formal recourse is a Reconsideration of Value. You submit evidence that the appraiser missed comparable sales or made factual errors. Fannie Mae allows one borrower-initiated ROV per appraisal, and the lender must provide the forms and process.9Fannie Mae. Reconsideration of Value (ROV) If the ROV surfaces a material problem with the original report, the lender must work with the appraiser to fix it. A successful challenge raises the appraised value and unlocks more borrowing capacity. If the ROV changes nothing, your remaining options are to accept the smaller loan, pay for a re-appraisal if the lender permits, or walk away.
Credit and Debt-to-Income Requirements
LTV sets the theoretical ceiling. Whether you actually qualify at the top of that range depends on your credit score and existing debts.
Credit Score Minimums
Conventional refinances through Fannie Mae require a minimum credit score of 620.1Fannie Mae. Eligibility Matrix FHA loans allow scores as low as 580 on standard terms, and down to 500 with additional requirements. VA and USDA loans have no hard federal minimum, but most lenders impose their own floor around 620. Score also drives the rate. The gap between a 680 and a 760 can be a quarter point or more, which compounds over the life of the loan.
Debt-to-Income Ratios
Your DTI compares total monthly debt payments (including the new mortgage) to gross monthly income. For conventional loans run through Fannie Mae’s automated underwriting system, the maximum DTI is 50%. Manually underwritten loans cap at 36%, though borrowers with strong credit and reserves can stretch to 45%.10Fannie Mae. Debt-to-Income Ratios Cash-out refinances can face tighter limits than rate-and-term transactions. Lenders count minimum required payments, not balances, so paying off a small revolving account before applying can move the ratio.
Waiting Periods Before You Can Refinance
You can’t refinance immediately after buying. Loan programs impose seasoning requirements that push back the earliest date the new loan can close.
For a conventional cash-out refinance, Fannie Mae requires that at least one borrower has been on the property’s title for a minimum of six months before disbursement of the new loan, and that the existing first mortgage being refinanced is at least 12 months old. Exceptions apply to properties acquired through inheritance, divorce, or transfers from a trust or LLC the borrower controlled. Time held by an eligible revocable trust or a majority-owned LLC counts toward the six-month requirement as long as ownership transfers to the borrower personally at closing.11Fannie Mae. Cash-Out Refinance Transactions
FHA streamline refinances require at least six payments on the existing FHA loan, at least six full months since the first payment was due, and at least 210 days since the original closing date. VA Interest Rate Reduction Refinance Loans (IRRRLs) also require at least 210 days and six payments. These windows exist to prevent rapid-fire refinancing that generates fees without benefiting the borrower.