Cash-out refinance — turn home equity into cash

Cash-out refinance — turn home equity into cash
Loan Program

Turn home equity into cash you can use.

Replace your current mortgage with a larger one and take the difference at closing — for renovations, consolidation, tuition, or an investment. Conventional cash-out to 80% LTV under agency rules, a wholesale option to 89.99% LTV with no mortgage insurance for qualified borrowers, FHA and VA cash-out programs with leverage of their own, and a jumbo cash-out for equity above the conforming limit.

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The Fundamentals

One new loan, cash at closing.

A cash-out refinance pays off your existing mortgage with a new, larger loan and hands you the difference in cash. The new loan is sized against the appraised value: conventional programs lend to 80% of value on a primary residence under Fannie Mae and Freddie Mac rules, and 75% on two- to four-unit homes, second homes, and investment properties. A wholesale conventional program reaches 89.99% LTV on a primary residence with no mortgage insurance for borrowers at 680 and above.

What decides the file is equity, occupancy, credit, and time: the leverage ceiling for the program and occupancy, twelve months on the first mortgage being paid off and six months on title before a conventional cash-out, the score that prices the loan, and a debt-to-income ratio inside the automated maximum. When the existing first mortgage is worth keeping, a home equity line of credit that sits behind it is usually the better tool — Lendmire runs both on the same numbers before recommending either.

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Three Cash-Out Programs

Pick the program that fits the file.

Three routes to the same result, each with its own leverage ceiling, occupancy rule, and insurance structure.

Conventional

Conventional Cash-Out

To 80% LTV on a primary residence under agency rules (75% for 2–4 units, second homes, and investment property), twelve months on the first mortgage being paid off and six months on title, and a wholesale lane to 89.99% LTV with no mortgage insurance at 680+.

FHA

FHA Cash-Out

To 80% LTV on a home you have owned and occupied for 12 months, with a 580+ wholesale credit floor and FHA mortgage insurance on the new loan. Non-FHA loans can be refinanced into it.

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VA

VA Cash-Out

To 100% of value including the funding fee for eligible veterans, with no mortgage insurance, seasoning of 210 days and six payments, and a net tangible benefit required.

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Leverage limits are program parameters, not offers. Eligibility, the appraised value, seasoning, credit, and underwriting decide every file. Taking cash out increases the loan balance and may extend the time it takes to pay off the home.
Program Highlights

What makes cash-out work.

Up To 89.99% LTV
A wholesale conventional lane reaches 89.99% LTV on a primary residence with no mortgage insurance at 680+. Agency programs stop at 80%.
Every Occupancy
Primary residences to 80%, and second homes and investment property to 75% under agency rules. FHA and VA cover owner-occupied homes.
Twelve Months On The Old Loan
Conventional cash-out needs the first mortgage it pays off to be twelve months old, note date to note date, plus six months on title; FHA asks for twelve months of occupancy; VA seasons by payments made.
Cash-Out Or HELOC
When your first mortgage is worth keeping, a home equity line behind it borrows against the same equity without replacing the loan.
Why Lendmire

Equity lending is most of what we do.

Cash-out refinances and home equity lines are the majority of the loans Lendmire closes, which means the comparison between them is run every day, on real numbers: the new payment on a cash-out against the existing payment plus a line, the closing costs of each, and the leverage each program allows.

We work with multiple wholesale lenders, so a file that falls outside one program is placed in another — the 80% agency cash-out, the 89.99% wholesale lane, FHA, or VA — and the terms come in writing from a licensed loan officer before anything is signed.

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Also Consider

Programs worth comparing.

A cash-out refinance replaces your mortgage. These alternatives borrow against the same equity in different ways — and sometimes cost less. When the new loan would exceed the conforming limit, see the jumbo cash-out refinance program.

Keep Your First Mortgage

Home Equity Line of Credit

Borrow against equity up to 90% combined loan-to-value while your existing mortgage stays in place. Draw what you need, when you need it.

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Flexible Credit

FHA Cash-Out Refinance

To 80% LTV with a 580+ wholesale credit floor and FHA mortgage insurance on the new loan. Refinance any loan type into FHA.

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Military & Veterans

VA Cash-Out Refinance

Up to 100% of value for eligible veterans, no mortgage insurance, and a funding fee many disabled veterans do not pay.

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Learning Center

Know before you borrow.

Guides, scenario breakdowns, and refinance strategy from our licensed loan officers.

Take the Next Step

Tools to move from reading to action.

Tool One

Mortgage calculator

Run the numbers on a refinance — including principal, interest, taxes, and insurance on the new loan.

Calculate Tool Two

Get a quote

Start a scenario review in under 30 seconds. A Lendmire loan officer follows up with the options in writing.

Start Tool Three

Compare cash-out and HELOC

See how a cash-out refinance stacks up against a home equity line on the same equity, and which keeps more of your current loan.

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Get Started

Ready to put your equity to work?

In about 30 seconds you can review cash-out and home equity options for your home. No commitment required.

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Available In 16 States

Cash-out refinancing, state by state.

Leverage ceilings and seasoning rules are national, and the equity is local. Explore the program parameters, the markets, and the scenarios for your state.