The Quick Read: A conventional cash-out refinance on a two- to four-unit home you live in is capped at 75% of the appraised value under the standard agency tables. A one-unit primary residence gets 80%. The cap applies to the total new loan, not to the cash you receive, and it is subject to lender guidelines and full file review.
Most articles that rank for this topic quote a much higher number, usually 95%. That figure belongs to purchases and limited cash-out (rate-and-term) refinances on 2-4 units. It does not apply when you take meaningful cash out. This page separates the two so you know which cap fits your situation.
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: 7.40% as of October 15, 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.
What Is the Cash-Out LTV Limit on a 2-4 Unit Primary Home?
The standard limit is 75% for a conventional cash-out refinance on an owner-occupied two-, three- or four-unit property. The Fannie Mae Eligibility Matrix lists 75% for 2-4 unit principal residences and 80% for one-unit homes. Freddie Mac’s Seller/Servicer Guide §4203.1 shows the same two figures.
Both agencies land in the same place. Shopping between them will not buy you a higher ceiling on a standard loan sold to either one. Lendmire arranges these loans through wholesale lenders, and across the programs it places files with, 75% on 2-4 units is the working number for standard conventional cash-out.
| Property and occupancy | Conventional cash-out LTV |
|---|---|
| One-unit primary residence | 80% |
| Two- to four-unit primary residence | 75% |
The table reflects the program figures Lendmire works with. Occupancy decides the leverage, so a property you do not live in sits in a different lane and is not covered on this page.
Why Do Other Pages Show 95%?
They are describing a different transaction. The 95% figure for 2-4 unit primary residences applies to purchases, and a limited cash-out refinance can reach comparable leverage. Cash-out stays at 75%.
| Transaction | Applies to your 2-4 unit home? | Typical cap |
|---|---|---|
| Purchase | Yes, if you will live in a unit | Up to 95% |
| Limited cash-out (rate-and-term) | Yes, with only incidental cash back | Well above 75% |
| Cash-out refinance | Yes | 75% |
A limited cash-out loan pays off your existing first mortgage, closing costs, and a purchase-money second lien. If you take more than incidental cash back, or pay off a second lien that was not used to buy the home, the loan is reclassified as cash-out. Then the 75% cap applies. If all you want is a different term or a lower payment with little cash back, you should not be quoted the 75% cap. Ask which lane your file sits in before comparing numbers.
How Is the Loan Underwritten, Step by Step?
Underwriting follows eight steps. Knowing the order helps you see where a file can fall short.
1. Classify the transaction. If the new loan pays off your first mortgage and returns cash beyond limited cash-out allowances, it is cash-out. The agency rules sit in Fannie Mae Selling Guide B2-1.3-03.
2. Confirm occupancy. The 75% tier for 2-4 units assumes you live in one of the units.
3. Check seasoning. At least one borrower must have been on title for six months. The existing first mortgage being paid off must be at least 12 months old, measured note date to note date.
4. Order the appraisal. LTV is the new loan amount divided by the appraised value. The appraisal sets the denominator, and a multi-unit appraisal typically reviews each unit’s rent schedule.
5. Run the cap. The 75% limit applies to the total new loan. Payoff of the old mortgage, other liens, closing costs and prepaids come out of that amount first.
6. Check ratios and reserves. On automated findings, the wholesale conventional programs generally allow a total ratio up to 50%. Under the agency rules, a file with a ratio above 45% on an automated casefile requires six months of reserves.
7. Count rental income. Rent from the units you do not occupy may count toward qualifying. The documentation rules are in the Selling Guide’s rental income section, and your lender will tell you what it needs.
8. Check the loan limit. The loan must fit the conforming limit for the unit count in your county. FHFA sets higher limits for two-, three- and four-unit homes. Above the limit, the loan is a jumbo loan and falls outside these agency tables.
What Does 75% Mean in Practice?
It means 75% of appraised value is the ceiling on your total new loan, not the amount of cash you take home. This is the most common misreading.
Picture a duplex you live in, with a first mortgage at 50% of its value. At 75%, the new loan can reach up to 25% of the value above your current balance. That is the room to work with before anything comes off the top. Closing costs, prepaids, and any other lien you pay off all reduce what reaches you. The cash is whatever remains.
Now say the appraisal comes in lower than you expected. The cap is still 75%, but it now applies to a smaller value, so the dollar ceiling drops by 75% of the appraisal gap. Your existing balance does not move, so all of that drop comes out of your cash. The percentage never changes; the dollar ceiling moves with the appraised value.
A few things can pull your maximum below the cap:
- An appraisal below your estimate.
- A credit score or ratio that falls short of the program’s minimums.
- A lender overlay that is stricter than the agency baseline.
- Reserves that do not meet the requirement for your ratio.
Does the Number of Units Change the Cap?
No. Duplex, triplex and fourplex all share the same 75% cash-out cap on a primary residence. The agencies do not step it down by unit count. What does change is the loan limit, which is higher for each added unit, and the underwriting detail, since more units mean more rent schedules to review. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
Why is the cap lower than the 80% for a one-unit home? The agencies treat multi-unit properties as carrying more risk per loan, since a vacancy in one unit has a larger effect on the borrower’s ability to pay. The lower cap is a cushion, not a penalty.
What Is the Difference Between Conventional, FHA and VA Cash-Out?
Government programs follow their own cash-out rules, which is why you will see different numbers on different sites. FHA and VA are outside the scope of this page, but the comparison explains the confusion.
| Program | Who sets the cap | Where to look |
|---|---|---|
| Conventional | Fannie Mae and Freddie Mac | Agency matrix and guide |
| FHA | HUD | FHA program rules |
| VA | Department of Veterans Affairs | VA program rules |
A conventional loan delivered under the standard agency tables cannot go above those limits. Some products sit outside the standard tables and set their own rules, and the wholesale lane described below is one of them.
Where Does the General Rule Break?
Several edge cases change the answer. Each one is worth checking before you assume the 75% cap or the six-month clock applies to you.
Title seasoning exceptions. Per Selling Guide B2-1.3-03, there is no waiting period for a home you inherited, or for property awarded to you in a divorce, separation or domestic-partnership dissolution. Time in a revocable living trust may count toward the six months if you are the primary beneficiary.
Delayed financing. If you bought the home with cash, you may be able to take cash out within six months of purchase. It requires an arm’s-length purchase, documented source of funds and no existing liens. The new loan is limited to your documented initial investment plus closing costs and prepaids.
The 12-month rule has exceptions. It does not apply to subordinate liens being paid off, or when you buy out a co-owner under a legal agreement.
Homes listed for sale. A property listed for sale must be taken off the market on or before the disbursement date.
The 95% increase does not follow you everywhere. It does not extend to high-balance or manually underwritten loans, so a borrower in a high-cost county should not assume the higher purchase and limited cash-out leverage carries over.
Texas homesteads. In Texas, a cash-out on a homestead is limited by the state constitution, and the higher wholesale lane described below is not written there. Texas borrowers should confirm the applicable limit with a lender before planning around any figure on this page.
Student-loan cash-out. Fannie Mae describes an option to pay off student loans with cash-out proceeds. Ask a loan officer how its LTV treatment applies to your file.
A separate wholesale lane. Outside the standard agency table, one wholesale lane reaches 89.99% LTV with no mortgage insurance. It requires a 680 score, a 50% ratio, a thirty-year fixed rate, a primary residence, a conforming balance, and its own six months of seasoning. Whether a 2-4 unit property fits that lane depends on the lender’s guidelines, so ask rather than assume. Treat 75% as your planning number unless a lender confirms otherwise in writing.
Will I Pay Mortgage Insurance at 75%?
Usually not. Conventional mortgage insurance applies above 80% LTV, and the standard cash-out cap on a 2-4 unit is 75%, so a standard cash-out on this property should not need it.
If insurance does apply to a loan you hold, the Consumer Financial Protection Bureau explains that you can ask to cancel at 80% of the original value, in writing, with a good payment history, no junior liens and no decline in value. The servicer must end it automatically when the balance is scheduled to reach 78%.
A larger balance also means a larger monthly payment. Cash-out loans carry risk-based pricing adjustments that vary by lender, and your Loan Estimate shows the actual costs. 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
LTV (loan-to-value): The new loan amount divided by the appraised value of the home.
Cash-out refinance: A new mortgage that pays off your current loan and returns cash beyond limited allowances.
Limited cash-out refinance: A refinance that pays off the existing first mortgage and costs with only incidental cash back, also called rate-and-term.
Seasoning: The minimum time you have owned the home or held the loan before a cash-out refinance is allowed.
Delayed financing: A cash-out refinance within six months of an all-cash purchase, subject to documentation rules.
Conforming loan limit: The maximum loan size the agencies will buy, set each year by FHFA and higher for 2-4 unit homes. Every figure here varies by lender and program, and guidelines, property type, leverage, and credit profile all apply.
What Does the Decision Look Like?
The choice comes down to how much cash you need and whether the 75% cap leaves enough after payoff and costs. If your balance is already close to 75% of value, little or nothing remains to take out. If the loan you have is strong in structure for you, a cash-out refinance replaces it with a new one at the larger balance, so weigh what you give up.
Compare the cap against your payoff, then your costs, then the cash you need. If the number falls short, the options are a smaller cash request, waiting for more equity or a higher appraisal, or a different structure. Lendmire’s cash-out refinance programs page covers how the conventional options compare.
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 on the home you live in.
Frequently Asked Questions
Does the 95% number apply to a cash-out refinance on a duplex?
No. The 95% figure covers purchases and limited cash-out refinances on 2-4 unit primary residences. Once you take meaningful cash out, the 75% cap applies. High-balance and manually underwritten loans are also excluded from the higher purchase-side leverage.
Is the limit the same for a duplex and a fourplex?
Yes. Both agencies use one 75% cash-out cap for owner-occupied 2-4 units. The conforming loan limit rises with each added unit, and the appraisal and rent documentation get more detailed, but the percentage stays the same. Final terms depend on lender guidelines, property type, leverage, and the borrower’s complete credit picture.
How long do I have to own the home before a cash-out?
At least one borrower must be on title for six months. Separately, the first mortgage being paid off must be at least 12 months old. People often merge these two clocks. Inheritance, divorce awards and delayed financing carry exceptions.
Is 75% the cash I can take out?
No. It is the ceiling on the whole new loan. Your payoff, closing costs, prepaids and any other liens come out first, and the remainder is your cash. Subject to lender guidelines and full file review.
Can I get more than 75% from another lender?
Under the standard Fannie Mae and Freddie Mac tables, no. The agencies set that limit for a 2-4 unit primary home. Some lenders apply a stricter overlay, which can lower your maximum. A separate wholesale lane reaches higher on certain primary-residence files, but whether a 2-4 unit qualifies is the lender’s call after a full file review.
For your own numbers, request a scenario review with Lendmire for the home you live in.
About Lendmire
As a mortgage broker (NMLS# 2371349), Lendmire helps homeowners and home buyers in 16 states with FHA, VA, conventional and jumbo purchase and refinance loans arranged through wholesale lenders. Lendmire is never the lender; program terms are set by the lender and the agency guidelines. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. Fannie Mae Eligibility Matrix
2. Freddie Mac Seller/Servicer Guide §4203.1
3. Fannie Mae Selling Guide B2-1.3-03
4. FHFA Conforming Loan Limit FAQs
5. CFPB: When can I remove PMI from my loan?
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can a Conventional Cash-Out Refinance Close at Your Home? · Can You Do a Conventional Cash-Out Refinance on a Recently Bought Home? · Can You Get a Conventional Cash-Out With One Unit Vacant?
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
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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.