The Quick Read: The program that reaches the most equity depends on who is borrowing. An eligible veteran can use a VA cash-out, which allows the highest leverage of any program. A borrower with a 680 score and a conforming balance may reach 89.99% LTV through a wholesale conventional lane with no mortgage insurance. Standard conventional cash-out stops at 80% on a one-unit primary home. Every figure here is subject to lender guidelines and full file review, and none of it is a commitment to lend.
Why the Highest Ceiling Is Not Always the Best Fit
The best program for your situation is the one you qualify for, not the one with the biggest number. A ceiling only helps if your credit, occupancy, loan type and timing fit the rules behind it.
Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.18% as of November 5, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the agency cap on a one-unit principal residence, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Lendmire is a mortgage broker. It places consumer loans through a network of wholesale lenders, and it does not lend itself. That matters here because the same homeowner can see very different maximums depending on which program the file matches. Lendmire’s cash-out refinance programs page covers the structures in more detail.
This article covers what the number means, how the loan is underwritten, the program ceilings, where the rules break, and how to choose.
What Does Maximum Loan-to-Value Mean on a Cash-Out?
Loan-to-value (LTV) is the new loan divided by the appraised value of the home. On a cash-out refinance, you replace your current mortgage with one larger loan. The new loan pays off the old one, covers any liens that must be cleared, and pays financed closing costs. Whatever is left comes to you as cash.
That last point trips people up. The maximum LTV is not the cash you receive. It is the size of the entire new loan. Payoffs and costs come out first.
The federal consumer-finance regulator’s guide to using home equity describes the same structure. A cash-out replaces your mortgage with a larger loan, and the term may be longer and the payment higher. It is also one new first mortgage, not a second loan stacked on top.
Maximum LTV by Program on a Primary Residence
Occupancy and unit count set the leverage. On a primary residence, the picture looks like this.
| Program | Primary-home ceiling | Key condition |
|---|---|---|
| Standard conventional cash-out | 80% on one unit | 75% on two to four units |
| Wholesale conventional, no-MI lane | 89.99% | 680 score, 50% ratio, 30-year fixed, conforming balance |
| VA cash-out | Up to the home’s full reasonable value | Eligible service; net tangible benefit test |
| FHA cash-out | Set by HUD against adjusted value | HUD cut its limit to the conventional level; mortgage insurance applies |
| Texas homestead cash-out | 80% | State constitution, Section 50(a)(6) |
| Jumbo cash-out | Set by the lender and program | Above the conforming limit |
Each row has a catch, so the details matter.
Standard conventional: on one unit
On a one-unit primary residence, a cash-out generally tops out at 80% LTV. Two- to four-unit primary residences carry a 75% ceiling, and so do second homes and investment property, so unit count and occupancy together set the leverage.
Pricing adjustments for cash-out also rise with LTV and drop with credit strength. That is a mechanical feature of agency pricing, not a number to memorize.
The wholesale lane that goes higher
Across the wholesale programs Lendmire places files with, one conventional lane reaches 89.99% LTV with no mortgage insurance. It is the one exception to the usual rule that agency loans above 80% carry mortgage insurance. It has tight conditions. These specifics are subject to lender guidelines and a full review of property, leverage, and credit.
- A 680 score.
- A 50% total ratio.
- A thirty-year fixed rate.
- A primary residence.
- A conforming balance.
- Its own six months of seasoning.
If any piece is missing, the file falls back to the 80% lane or another program. In Texas, this lane is not written on a homestead cash-out.
VA: the highest ceiling, with strings
The VA’s circular on cash-out refinancing says VA no longer guarantees a refinance when the loan exceeds the home’s reasonable value. Reasonable value is what the appraiser sets. The financed funding fee counts inside that ceiling and cannot push the loan past it.
The circular also requires a net tangible benefit test on every cash-out. The borrower must gain something concrete, such as a shorter term, a lower principal-and-interest payment, or a move from an adjustable to a fixed rate. And VA sets the ceiling, but each lender decides how much of it to use. Some set lower caps than the program allows.
FHA: tied to the conventional level
HUD cut its cash-out limit to match the standard conventional level. HUD Handbook 4000.1 measures it against “adjusted value” rather than appraised value. FHA also carries mortgage insurance as part of the loan. So FHA and standard conventional can share a ceiling and still cost different amounts to carry. FHA’s value shows up for borrowers whose credit or ratios fit FHA better than conventional.
Jumbo and Texas
Above the conforming limit, the jumbo lanes take over. They have their own score floors, leverage tiers and reserve rules, and the lender sets the cash-out cap. Lendmire’s piece Best Jumbo Cash-Out Refinance Program at Maximum LTV on a Primary Home goes deeper.
A Texas homestead is different again. A cash-out on a homestead is capped at 80% of the home’s value by the state constitution, whatever the program would otherwise allow.
How Is a Cash-Out Underwritten, Step by Step?
The loan moves through the same stages on almost every program.
1. Program match. Eligibility comes first. VA needs qualifying service. FHA and conventional depend on credit, ratios and the property.
2. Appraisal. The appraised value sets every LTV. A lower value shrinks the ceiling immediately.
3. Sizing the loan. The new loan must cover the payoff, required liens, financed costs and, on VA, the funding fee. Cash to you is what remains under the ceiling.
4. Seasoning and title checks. The first mortgage being paid off must be at least 12 months old, measured from note date to note date. A borrower must also have been on title for 6 months. Exceptions exist for delayed financing, inheritance and legal awards.
5. Credit and ratio review. The wholesale conventional programs start at a 620 decision score. The automated finding governs most files, with a total ratio ceiling of 50%. Manually underwritten loans use 36% or 45% ratios, depending on reserves and score factors.
6. Program-specific tests. VA files must show net tangible benefit and give a comparison of the old loan and the new one.
7. Disclosures and closing. You receive a Loan Estimate and, later, a Closing Disclosure. The old loan is paid off, and the remainder goes to you.
Freddie Mac’s Guide section 4301.5 adds that on a primary-residence cash-out, every borrower must occupy the home. There is no restriction on how the proceeds are used.
Worked Example: From Value to Net Cash
Run this in percentages of the original appraised value. These are illustrative assumptions, not figures from a real file.
Say the existing first mortgage sits at 50% of value, and the home qualifies for the 80% conventional ceiling. The gap is 30 points of value. Financed closing costs come out of that gap, so net cash is somewhat less than 30 points.
Now suppose the appraisal comes in 5% lower. The ceiling falls to 80% of 95%, or 76 points of the original value. The payoff stays at 50 points. The gap shrinks from 30 points to 26, a cut of about 13%. So a 5% drop in value cut your available cash by more than two and a half times as much in percentage terms.
That is why appraisal risk matters more than the headline percentage. The same arithmetic works in reverse. If you need a target amount of cash, back into the value the home must appraise at.
Where the General Rule Breaks
Some situations do not follow the usual pattern. These are the main ones.
- Delayed financing. A recent all-cash buyer can skip the six-month title wait if the conditions are met. The loan is still sized and priced as a cash-out.
- Streamlines give no cash. The FHA Streamline and the VA IRRRL are for borrowers who already have an FHA or VA loan. Neither pays out cash.
- Special properties. Some property types, such as single-width manufactured homes, are ineligible for conventional cash-out. Others carry lower caps.
- Properties listed for sale. A home that is listed for sale at disbursement is ineligible for conventional cash-out.
- Mortgage insurance. Agency loans above 80% LTV carry it, except in the wholesale no-MI lane. Where it applies, you can ask for cancellation at 80% of the original value. The servicer must end it at 78% under the Homeowners Protection Act. Terms depend on the lender’s guidelines, the property type, the leverage, and a full review of the credit profile.
Which Program Fits Which Borrower?
The decision depends on the profile. This table maps the usual cases.
| Borrower profile | Usual starting point |
|---|---|
| Eligible veteran needing the most equity | VA cash-out |
| 680 score, 50% ratio, conforming balance, fixed rate | Wholesale no-MI lane |
| Lower credit or higher ratios | FHA or standard conventional |
| Balance above conforming limit | Jumbo lanes |
| Texas homestead | 80% cap applies |
| Existing FHA or VA loan, no cash needed | Streamline |
Here is the flip point. A veteran with strong credit may find the VA ceiling is more than they should borrow. A borrower with a 680 score who sits at 85% LTV with a 30-year fixed may do better in the no-MI lane than in FHA, which carries mortgage insurance. Neither comparison is a rule.
What Lowers Your Real Maximum
Several things pull the usable number below the program ceiling.
- Credit and ratios. A score below a program’s floor ends the file. A ratio near the 50% ceiling narrows options.
- Lender overlays. A lender can set a stricter cap than the program allows. This is common on VA.
- Seasoning. A first mortgage under 12 months old or a short time on title blocks the loan.
- Property type and occupancy. Two- to four-unit and non-primary homes drop to 75%.
- Appraisal. As shown above, a lower value hits cash hard.
- Financed costs. Every dollar rolled in reduces cash and adds to the balance.
What Does Borrowing at the Ceiling Really Cost?
Higher leverage leaves a thinner cushion. A modest drop in value can leave you owing more than the home is worth on paper. It also raises cost in ways that vary by program. Conventional adds pricing adjustments by LTV and score. FHA adds mortgage insurance. VA adds a funding fee inside the ceiling.
You are also repricing the whole balance. If the current first mortgage carries terms you like, a cash-out replaces them for the full amount, not just the cash portion. The CFPB’s research on cash-out borrowers found many used proceeds to pay down card and auto debt. Credit scores improved at first, then drifted down. A cash-out that clears card debt only helps if the balances stay down.
Weigh the other options, too. A home equity line or a second loan leaves the first mortgage alone. Whether that beats a cash-out depends on how much you need and what your current loan is worth keeping.
Key Terms Defined
Loan-to-value (LTV): The new loan amount divided by the home’s appraised value.
Cash-out refinance: A new, larger first mortgage that pays off the old one and gives you the difference in cash.
Limited cash-out (rate-and-term): A refinance that pays off the old loan and costs, with only small incidental cash back.
Net tangible benefit: A VA test requiring the new loan to give the borrower a concrete advantage, such as a shorter term.
Seasoning: The minimum age of the loan being paid off, or the time you have held title.
Decision score: The credit score a lender uses to qualify the file.
What Should You Prepare?
Gather proof of income and assets. Know your current loan’s payoff and its age. Confirm how long you have been on title. Have a target cash amount and a plan for it. A broker can then run your numbers against several wholesale programs at once. 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. Lendmire’s piece Best Cash-Out Refinance Program on a One-Unit Primary Residence With Maximum LTV Limits is a useful companion.
Frequently Asked Questions
Which cash-out refinance reaches the highest LTV on a primary residence?
VA cash-out allows the highest leverage, up to the home’s reasonable value, for eligible borrowers. For others, a wholesale conventional lane reaches 89.99% with no mortgage insurance when the file meets its conditions. Standard conventional stops at 80% on one unit. Lender overlays can lower any of these, subject to full file review.
Can I take out all of my equity?
Rarely. Only VA comes close to the full value, and lenders may set lower caps. Payoffs, financed costs and any funding fee come out of the ceiling first. A thin cushion also raises your risk if values dip.
Do I need mortgage insurance on a cash-out?
It depends on the program. Agency loans above 80% LTV carry mortgage insurance, except in the wholesale no-MI lane at 89.99%. FHA carries its own insurance. Where required, conventional insurance can be cancelled at 80% of original value and must end at 78%.
How soon after buying can I do a cash-out refinance?
Usually after six months on title, and the loan being paid off must be at least 12 months old. Delayed financing, inheritance and legal-award exceptions can change this. Under delayed financing, a recent all-cash buyer can borrow sooner, still priced as a cash-out.
Does Texas have a different limit?
Yes. A cash-out on a Texas homestead is capped at 80% of the home’s value by the state constitution. The wholesale no-MI lane is not written on a homestead there.
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 broker licensed for consumer lending in 16 states. Lendmire arranges FHA, VA, conventional and jumbo purchase and refinance loans through wholesale lenders; every file is underwritten by the lender under the applicable program guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
5. CFPB: CFPB Report Finds Cash Out Mortgage Refinance Borrowers Improve Credit Scores
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Cash-Out Refinance Options Using Projected Rent From Part of the Primary Residence · Best Cash-Out Refinance Program With a Co-Signer on the Loan · Best Cash-Out Refinance Program When the House Is Held in a Trust
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.