The Quick Read: The program you use sets your maximum cash far more than the lender does. On a one-unit home you live in, conventional cash-out tops out at 80% loan-to-value, and one wholesale lane reaches 89.99% for qualified borrowers. Which lenders write the higher limits depends on your credit, property, and documentation. Every figure here is subject to lender guidelines and full file review, and none of it is a commitment to lend.
What Does Loan-to-Value Mean for Your Cash?
Loan-to-value (LTV) is the new loan balance divided by the home’s appraised value. The cap applies to the whole value of the home, not just your equity. Every lien counts, including a HELOC or second mortgage.
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: 7.24% as of October 29, 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.
The arithmetic is simple. Multiply the appraised value by the LTV ceiling. That gives the largest new loan allowed. Subtract your current payoff, then subtract closing costs you roll into the loan. What remains is your cash.
Financed closing costs eat room under the ceiling before any cash reaches you. A higher ceiling helps, but it is only one of several limits. Credit, ratios, reserves, and the appraisal can stop a file first.
Key Takeaways
- Program rules set the ceiling. A lender can be stricter than the program, never looser.
- Conventional cash-out on a one-unit primary home is 80% LTV. Other occupancies and 2-4 unit homes are 75%.
- One wholesale lane reaches 89.99% with no mortgage insurance, with tighter credit and property conditions.
- VA allows the highest program ceiling, 100%, but only for eligible veterans in their own home.
- Streamline products give no cash at all.
How Does Your Lender Find the Right Ceiling?
Most of what you read online conflicts because it mixes two things. The first is the program rule: the maximum the agency or investor allows. The second is a lender overlay: an extra restriction a specific lender adds on top.
Across the wholesale programs Lendmire places files with, I see this every week. Two lenders can sit under the same program and still draw the line in different places on credit score, ratios, or property type.
This is also why no single “best” lender exists. The lenders that write the highest limit for you depend on your property, credit profile, and how you document income. A broker shops several wholesale lenders and matches your file to the one whose overlays fit. Lendmire is a mortgage broker, not a lender, so that matching is the job.
The Lanes That Reach Higher Leverage
Conventional cash-out
Conventional loans follow Fannie Mae and Freddie Mac rules. The Fannie Mae Eligibility Matrix sets cash-out ceilings by occupancy. Across the programs we place, the figures are 80% LTV on a one-unit primary residence and 75% on two- to four-unit primary residences, second homes, and investment property. Freddie Mac’s Guide §4301.5 defines cash-out as a refinance with no restriction on how you use the proceeds. It also covers homes owned free and clear. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
Cash-out carries extra pricing. The Fannie Mae Selling Guide notes that a loan-level price adjustment applies to certain cash-out refinances, based on LTV and credit score. You see it in the loan terms, not necessarily as a separate fee line.
The wholesale lane
One wholesale lane reaches 89.99% LTV with no mortgage insurance. The conditions are tight. You need a 680 score, a 50% total ratio, a thirty-year fixed rate, a primary residence, and a conforming balance. It has its own six months of seasoning. In Texas, the state constitution caps a cash-out on the homestead at the agency figure, so this lane is not written there. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Honestly, this is the lane people mean when they ask for the highest conventional ceiling. It fits a narrow borrower, and many files will not qualify.
VA cash-out
The VA program is the one place a ceiling reaches 100%. VA Circular 26-19-05 says VA does not guarantee refinance loans when LTV exceeds 100%, funding fee included. You need a Certificate of Eligibility and you must live in the home. VA’s cash-out page confirms the lender orders the appraisal, and you work through a private lender, not VA directly.
Here is the catch. The program ceiling and what a given lender offers are different numbers. Some lenders set their own lower cap on cash-out. The lenders that write the full 100% are a smaller group, and finding them is where a broker earns the work.
FHA
FHA caps cash-out well below 100%. FHA also offers a Streamline for existing FHA loans, but a Streamline gives no cash back. The same is true of the VA IRRRL. Neither is a cash-out tool.
Jumbo
Above the conforming limit, jumbo lanes take over. These start at a 660 decision score, reach leverage up to 90%, and go to loans of $5,000,000, with a 50% ratio ceiling on fixed lanes. Jumbo cash-out is its own conversation. Every figure here varies by lender and program — guidelines, property type, leverage, and credit profile all apply.
Which Limit Stops You First?
LTV is not the only gate. Run through this list in order.
1. Appraised value. If the appraisal comes in low, every dollar of cash shrinks with it.
2. Credit score. Conventional wholesale programs start at a 620 decision score. The higher-leverage lane needs more.
3. Total ratio. The automated finding governs most files, with a 50% total ratio ceiling. Manually underwritten loans run 36% or 45%.
4. Reserves. The Fannie Mae matrix applies minimum reserves on cash-out when the DTI on the casefile exceeds 45%.
5. Seasoning. The first mortgage being paid off must be at least 12 months old, note date to note date. You also need to be on title for 6 months, with exceptions for delayed financing, inheritance, and legal awards.
6. Occupancy and units. A duplex or a second home drops you from 80% to 75%.
7. Credit events. Agency waiting periods apply: four years from a chapter 7 discharge, seven from a foreclosure, four from a short sale or deed-in-lieu. Documented extenuating circumstances can shorten them.
Most files I see are stopped by the appraisal, the ratio, or seasoning, not by the ceiling itself. Find your binding limit before you chase a higher one.
A Worked Example, Without the Dollars
Take two homeowners with the same home and the same payoff, a balance sitting at about 55% of the value. The first has a one-unit primary home and a conventional file. The ceiling is 80%, so a meaningful slice of the home’s value is available before closing costs.
The second is an eligible veteran in the same house. The program ceiling is 100%, so a larger slice of the home’s value is on the table, if the lender’s overlay allows it.
Same house, different lane, very different cash. Then the costs come off the top. Financed closing costs, mortgage insurance where it applies, and the VA funding fee on a VA loan all reduce what you walk away with.
What Maximum Leverage Costs You
More leverage means thinner protection. Here is what changes as you push the ceiling.
- Mortgage insurance. Required above 80% LTV on conventional. You can request cancellation at 80% of the original value with good payment history, no subordinate liens, and no decline in value. The servicer must end it automatically at 78%. Published typical annual premiums run 0.58% to 1.86% of the balance. That is a range, not a quote.
- Pricing adjustments. Cash-out loans carry the adjustments described above.
- Larger payment. The CFPB’s guide on using home equity warns that the monthly payment may rise because the new loan is larger, and that payoff may take longer. It also notes that lenders typically want you to keep 10% to 20% of your home’s value as equity.
- Price-drop risk. A thin cushion means a modest decline in value can leave you owing more than the home is worth.
The CFPB also studied cash-out borrowers over several years. Many used the money to pay down card and auto debt. Credit scores improved at first, then drifted down, though they stayed above their pre-refinance levels. Balances partly crept back. Paying off cards with home equity only works if the spending stops.
Which Edge Cases Break the Rule?
- Free and clear homes. If you own the home with no mortgage, a new loan still counts as cash-out.
- Student loan cash-out. Fannie Mae waives the price adjustment when the loan meets its student-loan requirements. The standard LTV limits still apply.
- Manufactured homes. Cash-out carries a lower cap than site-built, and single-width homes are not eligible, per the Fannie Mae manufactured housing matrix.
- Limited cash-out. This is the lower-leverage cousin. It pays off your first mortgage, closing costs, and a purchase-money second, with only incidental cash back. It reaches 95% LTV on a one-unit primary residence, but it is a rate-and-term loan, not a cash product.
- Special state rules. Some states, Texas among them, have their own home-equity rules.
- Rental or second home. Occupancy decides leverage, so those drop to 75% on conventional cash-out. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
Which Lender Type Fits You?
You cannot ask a single question and get one answer. Match your situation to the lane.
| Your situation | Lane to explore | Main tradeoff |
|---|---|---|
| Eligible veteran, lives in home | VA cash-out | Funding fee, lender overlays |
| Primary home, strong credit | Conventional or the 89.99% lane | Tight credit and seasoning rules |
| Primary home, average credit | Conventional at 80% | Mortgage insurance not needed at 80% |
| Existing FHA or VA loan, no cash needed | Streamline or IRRRL | No cash back |
| Loan above conforming limit | Jumbo | Higher score, reserves |
A broker shops several wholesale lenders against your file. That is how you reach a looser overlay than the one your own bank might have.
Questions to Ask Before You Apply
- What is the maximum LTV on my program, and is that the program’s rule or your overlay?
- Which of my limits hits first: ratio, credit, reserves, or appraisal?
- How much of the new loan goes to closing costs?
- When does mortgage insurance end, if it applies?
- Is a home equity line or a second loan a better fit than a full refinance?
Once you apply, you will receive a Loan Estimate, and compare the full terms. On a primary residence, you also have a three-business-day right to cancel a refinance, per Ask CFPB. Funds are disbursed after that window closes.
Key Terms Defined
- Loan-to-value (LTV): the new loan balance divided by the home’s appraised value.
- Cash-out refinance: a new mortgage larger than your payoff, with the difference paid to you.
- Seasoning: the waiting period on a loan or on title before you can refinance.
- Loan-level price adjustment (LLPA): a pricing add-on tied to credit score and LTV.
- Overlay: an extra rule a lender adds on top of the program’s own limit.
- Streamline: an FHA or VA refinance of an existing government loan, with no cash back.
Frequently Asked Questions
Can I cash out all of my equity?
No on most programs. Conventional cash-out stops at 80% of value on a one-unit primary home, so you always keep some equity. VA is the exception, with a 100% program ceiling for eligible veterans. Even there, the lender’s own cap, closing costs, and the funding fee reduce what reaches you.
Why do sources quote different VA numbers?
They mix the program ceiling with lender overlays. The VA program ceiling is 100%. Individual lenders may cap cash-out lower. Always ask whether a quoted number is the program rule or that lender’s own limit.
What is the maximum for a duplex or second home?
75% on conventional cash-out. Occupancy and unit count decide leverage, so those properties sit below the 80% figure for a one-unit primary home. Subject to lender guidelines and full file review.
Does higher LTV mean a higher cost?
Generally, yes. Higher leverage and lower credit scores bring pricing adjustments on cash-out. Above 80% LTV, conventional loans also need mortgage insurance. The 89.99% wholesale lane is the exception on mortgage insurance, with tighter credit and property conditions.
How does the appraisal affect my maximum cash?
Directly. The ceiling applies to appraised value, so a lower appraisal shrinks the largest allowable loan point for point. Your lender orders the appraisal, and the result can be the single biggest swing in the cash you receive.
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. Start with Lendmire’s cash-out refinance programs page.
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 with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae Eligibility Matrix
3. Fannie Mae Selling Guide B2-1.3-03, Cash-Out Refinance Transactions
6. CFPB, Using Your Home Equity guide
7. Ask CFPB
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 vs Home Equity Loan for Home Improvements · Is a Cash-Out Refinance Smarter Than a Personal Loan for a Big Expense?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.