The Quick Read: There is no single national minimum. On the wholesale conventional programs Lendmire places files with, the floor starts at a 620 decision score, and some paths ask for more. The program, the loan-to-value ratio (LTV), and how the file is underwritten all move the number. Every figure here is subject to lender guidelines and full file review, and none of it is a commitment to lend.
Key Takeaways
- Conventional cash-out starts at a 620 decision score on the wholesale programs. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review.
- A higher score can open a better lane. One wholesale lane reaches 89.99% LTV with no mortgage insurance at a 680 score.
- Leverage depends on occupancy. A one-unit home you live in reaches 80% LTV. Two- to four-unit homes, second homes, and investment property top out at 75%.
- Seasoning, LTV, and ratios often decide eligibility before the score does.
- The score also affects cost. A lower score or higher LTV can cost more even when you qualify.
What Score Do You Need for a Cash-Out Refinance?
The wholesale conventional programs start at a 620 decision score. That is the score the underwriting system uses after it reviews your credit reports. It is a floor, not a promise. Meeting it gets your file into the room. It doesn’t decide the outcome.
A cash-out refinance replaces your current mortgage with a bigger one. The new loan pays off the old balance and hands you the difference. The amount you can take depends on your home’s value and the LTV cap, not only your score.
Here is how the main paths line up across the programs these files are placed with:
| Path | Score floor | Cash-out LTV cap |
|---|---|---|
| Conventional, one-unit home you live in | 620 decision score | 80% |
| Conventional, adjustable rate, manual underwriting | 640 | Per Eligibility Matrix |
| Conventional, two- to four-unit, second home, investment | 620 decision score | 75% |
| Wholesale no-mortgage-insurance lane | 680 | 89.99% |
| Jumbo lanes | 660 decision score | Set by the lane |
| FHA and VA | Set by the lender | FHA cap set by HUD |
The 89.99% lane has tight conditions. It covers a primary residence on a thirty-year fixed rate with a conforming balance. It carries a 50% total ratio ceiling and its own six months of seasoning. Texas homestead loans can’t use it, because the state constitution caps a homestead cash-out at the agency figure.
If your title mentions “investments,” here is the one-sentence version. Occupancy decides leverage: a rental or second home reaches 75% LTV on a conventional cash-out, against 80% for a one-unit home you live in. Leverage, reserves, and pricing vary by lender and program; the final terms follow the full file review.
Why Do Different Lenders Quote Different Minimums?
Because the minimum is a stack of rules, and each layer can be set by someone different. The agency sets the base rule. The wholesale lender may add its own requirements on top. Those add-ons are called overlays.
That is why you’ll see 620 on one page and 660 on another. Neither is wrong. They describe different programs, different LTVs, or different underwriting methods.
Government loans show the same pattern. HUD’s Handbook 4000.1 sets the FHA cash-out LTV cap. FHA allows lower scores than conventional, but lenders often set higher internal minimums. VA works similarly. Lenders apply their own score minimums to VA loans, and those differ from one lender to the next. Confirm the specifics for your loan in VA Pamphlet 26-7, Chapter 6.
How Is a Cash-Out Refinance Underwritten, Step by Step?
Underwriting is the lender’s review of your credit, income, debts, and home. Here is the sequence, in order.
1. Classify the loan. A limited cash-out refinance pays off the first mortgage, closing costs, and a purchase-money second lien, with only incidental cash back. A true cash-out puts real money in your hands. The two carry different LTV caps. Limited cash-out on a one-unit home you live in reaches 95%. Cash-out reaches 80%.
2. Check seasoning. Seasoning is how long you’ve held the loan or the title. Conventional cash-out needs the first mortgage being paid off to be at least 12 months old, measured note date to note date. At least one borrower must have been on title for six months.
3. Confirm the home isn’t listed. If it is for sale, it has to come off the market by the disbursement date.
4. Pull credit and score the file. An automated system reviews most files. That automated finding governs most of them. A person underwrites the rest, using the score and reserve factors in the Eligibility Matrix.
5. Check ratios and reserves. The total ratio ceiling is 50% on the wholesale programs. Manual files use 36% or 45%, depending on the factors in the Matrix. Reserves are the savings left after closing. Higher ratios can trigger more of them.
6. Order the appraisal. The appraised value sets the LTV cap. That cap sets the most cash you can take.
7. Price the loan. Score and LTV feed into a risk-based credit fee. A lower score or higher LTV costs more.
8. Disclose and close. You receive a Loan Estimate and, before closing, a Closing Disclosure. Compare the two line by line.
Steps 2, 3, and 6 knock out more files than the score does. A borrower with a 740 can still fail on seasoning.
What Does the Score Do Besides Qualify You?
It prices you. Two borrowers can both qualify and still pay differently. Closing costs and prepaid items can be rolled into the new loan. That raises your balance, so it also raises your LTV.
The score can also open lanes. Take the 89.99% no-mortgage-insurance lane. It asks for a 680. Mortgage insurance is the cost lenders add when your LTV is above 80%. On that lane, the higher score buys leverage without it.
Think of it as three dials: score, LTV, and ratios. A strong score can offset a tight ratio. A thin score may need lower LTV or more reserves. Across the wholesale programs, files rarely fail on one dial alone. They fail on the combination.
Which Score Does the Lender Use?
The decision score, which comes from your credit reports. Many lenders pull all three bureaus and use a middle score. Others use the lowest score when several borrowers apply. The rule varies by program, so ask which score your lender will use before you apply.
This matters on joint files. A spouse with a weaker score can pull down the whole application. Sometimes removing that borrower helps, if the remaining income carries the ratios. Sometimes it doesn’t. Run both versions with your loan officer before you decide.
What Structures and Variations Exist?
Five structures cover most homeowners.
Conventional cash-out. This is the baseline. It gives you 80% LTV on a one-unit home you live in and 75% on two- to four-unit homes. The same 75% applies to second homes and investment property. Check the Fannie Mae Eligibility Matrix for the full grid by occupancy, units, and transaction type. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
The 89.99% lane. It requires a 680 score, a 50% ratio ceiling, and its own six months of seasoning. It has the narrowest fit but the highest reach.
FHA cash-out. It carries an 80% LTV cap per HUD, and it is for homes you live in. Lender requirements on score and occupancy time vary. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
VA cash-out. Eligible veterans can refinance into cash. It differs from the VA IRRRL, which is a rate-and-term streamline for an existing VA loan. The IRRRL can’t take equity out.
Jumbo. Above the conforming loan limit, the jumbo lanes take over. They start at a 660 decision score.
One note on look-alikes. The FHA Streamline and VA IRRRL are rate-and-term products. Neither is a cash-out route. If you want cash, you need a real cash-out loan with a full appraisal.
Where Does the General Rule Break?
Several situations bend the standard path.
- You bought with cash. Delayed financing lets you refinance an all-cash purchase within six months if you document where the purchase funds came from. It skips the usual waiting period.
- You inherited or were awarded the home. The six-month title rule has exceptions for inherited or legally awarded property.
- You have a temporary buydown. A mortgage with a temporary rate buydown is ineligible as a cash-out transaction. Details are in Fannie Mae’s Selling Guide topic B2-1.3-03.
- You’re in Texas. The state constitution caps homestead cash-out at the agency figure. The wholesale 89.99% lane isn’t written there.
- You have a recent credit event. Agency waiting periods apply: four years from a chapter 7 discharge, seven from a foreclosure, and four from a short sale or deed-in-lieu. Documented extenuating circumstances can shorten them.
- The home is in an LLC. A property held by an entity you control may be eligible as a limited cash-out if title moves to you personally. Confirm this against the guide.
- Your score sits right at the line. The next section covers that.
What If Your Score Is Just Under the Line?
Start with the more affordable fixes. Work through this list in order.
1. Pull your own reports first. Look for errors, old accounts reported as open, and balances that don’t match. Dispute what’s wrong.
2. Lower card balances before the lender pulls credit. Utilization is the share of your credit limits you’re using. Paying cards down can lift a score by the time the file is underwritten.
3. Skip new credit. A new card or car loan adds an inquiry and a new balance.
4. Time the application. If you’re about to pay off a card, finish before the pull, not after.
5. Check borrower combinations. On a joint file, test whether one borrower alone clears the line.
6. Lower the LTV. Taking less cash can move you into a lane with a lower floor or a lower credit fee.
7. Compare programs. A score that misses conventional may fit FHA or VA, or the reverse. Each uses its own lender-set minimum.
Picture a homeowner with a 640 score who wants cash at 80% LTV. They might clear the floor and still face a higher credit fee. Dropping to a lower LTV could soften that cost. It’s a toss-up between taking less cash now and waiting a few months to lift the score. The right answer depends on what the money is for. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
How Do Borrowers Usually Decide?
Start with what the cash is for. A cash-out refinance swaps your existing mortgage for a larger one. The Consumer Financial Protection Bureau warns that the balance usually grows, the payment often rises, and the payoff period may lengthen. Its research adds that turning unsecured debt into mortgage debt puts your home at risk if payments become unsustainable. That’s the real tradeoff, and no score fixes it.
Then compare against keeping your loan. A cash-out replaces your first mortgage, so you give up whatever terms you have now. A home equity line or home equity loan adds a second payment and leaves the first loan alone. Neither is better in every case. Which one wins depends on the terms you hold today.
Then weigh the credit side. If you clear the floor but sit near it, the credit fee may eat into the benefit. If your score is strong, you may reach a lane with more leverage and no mortgage insurance.
Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Key Terms Defined
Decision score: The credit score the underwriting system uses to judge your file, drawn from your credit reports.
LTV (loan-to-value): The new loan balance divided by the home’s appraised value, shown as a percentage.
Seasoning: The time you’ve held a loan or the title before you can refinance with cash out.
Overlay: A lender’s extra requirement on top of the agency rule, often a higher score minimum.
Limited cash-out refinance: A refinance that pays off the first mortgage and closing costs, with only incidental cash back.
Mortgage insurance: Coverage the borrower pays for when LTV is above 80%. It cancels at 80% on request and ends automatically at 78% under the Homeowners Protection Act.
Next Step
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. The cash-out refinance programs page lays out the options. For a plain-English look at the credit side across loan types, see Lendmire’s piece What Is The Minimum Credit Score For A Cash Out Refinance.
Frequently Asked Questions
Is 620 enough for a cash-out refinance?
It can be, on the wholesale conventional programs that start at a 620 decision score. But 620 gets you in the door only. Your LTV, ratios, seasoning, and reserves all still apply, and a lower score carries a higher credit fee. Subject to lender guidelines and full file review.
Does a rental or second home need a higher score?
The score floor on the wholesale conventional programs is the same 620 decision score. What changes is leverage. A rental or second home reaches 75% LTV on conventional cash-out, while a one-unit home you live in reaches 80%. Individual lenders may layer on higher minimums. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Can I use an FHA Streamline or VA IRRRL to pull cash out?
No. Both are rate-and-term streamlines for existing government loans. Taking equity out requires a cash-out refinance with a full appraisal and underwriting. FHA cash-out is capped at 80% LTV under HUD’s handbook, and VA cash-out is a separate product from the IRRRL. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
How long do I have to own my home before I cash out?
On conventional loans, the first mortgage being paid off must be at least 12 months old, and one borrower must have been on title for six months. Delayed financing, inheritance, and legal-award exceptions exist. Confirm the exact terms in the Selling Guide.
Will a bankruptcy or foreclosure block me?
It can, for a set waiting period. The agency waits are four years from a chapter 7 discharge, seven from a foreclosure, and four from a short sale or deed-in-lieu. Documented extenuating circumstances can shorten them, and your lender will review what applies to your file.
For your own numbers, request a scenario review with Lendmire.
For current guidelines and terms, see Lendmire’s refinance programs page.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage serving homeowners and home buyers in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending channels; Lendmire brokers the financing and the lender underwrites each application. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. HUD Handbook 4000.1 transmittal
2. VA Pamphlet 26-7, Chapter 6
3. Fannie Mae Eligibility Matrix
4. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
5. Consumer Financial Protection Bureau
This article is part of Lendmire’s Refinance series — every loan program’s qualification details, guidelines, and scenarios live on the loan options page.
Related reading: How Much Equity a Cash-Out Refi Releases When Scaling to Ten Doors · Sell vs Cash-Out Refi When You Need Equity for the Next Door · Can an S-Corp Owner Cash Out Without Tax Returns?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosures. The information presented in this article is general market commentary, not financial, legal, or tax advice. Lendmire is a mortgage brokerage (NMLS# 2371349) — not a direct lender or depository institution — and loan placement is subject to lender underwriting. Nothing in this content represents a commitment to lend. Loan terms, pricing, and program availability vary based on borrower qualifications, property characteristics, and state of subject property, and are subject to change at any time. Lendmire complies with Equal Housing Opportunity requirements. Consumer access: nmlsconsumeraccess.org.