How much cash you can get from a cash-out refinance depends largely on your loan type — conventional, FHA, VA, or jumbo. Each program has its own rules about Loan-to-Value (LTV) limits, credit requirements, and underwriting guidelines.
Understanding these limits is essential before you apply, because your loan type can mean the difference of thousands of dollars.
This guide breaks down the maximum cash-out refinance limits for each loan type in 2026, how lenders calculate your maximum loan amount, and how to estimate the cash you can actually pocket.
Key Takeaways
✅ Most conventional and FHA cash-out refinances cap out at 80% LTV
✅ VA cash-out refinances are the most flexible, allowing up to 90–95% LTV
✅ Jumbo cash-out loans have the most restrictive limits, often 60–70% LTV
✅ Your home value, credit score, and debt-to-income ratio affect your maximum allowable loan
💡 Pro Tip: Because lender pricing can vary widely even for identical borrower profiles, it’s important to get multiple offers and compare them side by side. Even a 0.25% higher interest rate can mean thousands of dollars less in your pocket.
How Lenders Calculate Your Maximum Cash-Out Amount
Every loan type uses the same basic formula:
Maximum Loan Amount = Home Value × Maximum LTV
Cash Available = Maximum Loan Amount – Current Mortgage Balance Closing Costs
Let’s look at how this changes based on loan type.
1. Conventional Cash-Out Refinance Limits
Conventional loans follow strict guidelines set by Fannie Mae and Freddie Mac (government-sponsored entities).
📌 Maximum LTV: 80%
This means you must leave at least 20% equity in your home after refinancing.
Example
Home value: $500,000
Max loan @80% = $400,000
Current mortgage = $310,000
Potential cash-out: ~$90,000 (minus closing costs)
This example is for illustrative purposes only and does not reflect a real mortgage offer.
Occupancy Restrictions
Primary residence: 80% LTV
Second home: Often 75% LTV
Investment property: Typically 70–75% LTV
Actual requirements may vary by lender.
Credit Requirements
Minimum score: 620
Best pricing: 740+
Actual requirements vary by lender.
Who It’s Best For
Homeowners with strong credit and substantial equity who want predictable, fixed-rate financing.
2. FHA Cash-Out Refinance Limits
FHA loans offer similar LTV limits but more flexible credit standards.
📌 Maximum LTV: 80%
Same as conventional loans, but with several unique FHA rules:
FHA Requirements
12 months of on-time mortgage payments
Owner-occupied only (no second homes or investment properties)
Home must meet FHA property standards
MIP (mortgage insurance) is required on the new loan
Credit Requirements
Minimum score: 580–600
More lenient DTI allowances
Requirements vary by lender.
Example
Home value: $420,000
Max loan @80% = $336,000
Current mortgage = $290,000
Cash-out available: ~$46,000
This example is for illustrative purposes only and does not reflect a real mortgage offer.
Who It’s Best For
Borrowers with fair credit or FHA existing loans who want cash-out flexibility.
3. VA Cash-Out Refinance Limits
VA loans offer the most flexible cash-out refinance program in the country for eligible service members, veterans, and qualifying spouses.
📌 Maximum LTV: 90-95% (depending on the lender)
VA lenders may allow slightly higher LTVs, depending on your qualifying factors.
Example (90% LTV lender)
Home value: $500,000
Max loan @90% = $450,000
Current mortgage = $350,000
Cash-out available: ~$100,000
This example is for illustrative purposes only and does not reflect a real mortgage offer.
Credit Requirements
Many lenders require 620+
Best pricing at 700+
VA Advantages
No PMI
Flexible DTI
Great for borrowers with limited equity
Who It’s Best For
VA-eligible borrowers seeking the highest possible cash-out amount.
4. Jumbo Cash-Out Refinance Limits
Jumbo loans exceed conforming loan limits (varies by county). Because they involve larger loan amounts, lenders apply very conservative limits.
📌 Typical Maximum LTV: 60–70%
Some lenders do not allow cash-out refinances on jumbo loans.
Example
Home value: $1,300,000
Max loan @65% = $845,000
Current mortgage = $600,000
Cash-out available: ~$245,000
This example is for illustrative purposes only and does not reflect a real mortgage offer.
Credit Requirements
700–720+ minimum
Strong reserves (6–12+ months)
Lower DTI required (40–43%)
Exact requirements vary by lender.
Who It’s Best For
High-income, strong-credit homeowners needing large cash-out amounts and already in a jumbo loan.
Cash-Out Refinance Limits by Loan Type (At a Glance)
Loan Type | Maximum LTV | Typical Cash-Out Amount | Notes |
Conventional | 80% | Moderate | Best for strong credit |
FHA | 80% | Moderate | More flexible credit, must be the primary residence |
VA | 90–95% | High | No PMI, best for VA-eligible borrowers |
Jumbo | 60–70% | Very high | Strictest credit & reserve rules |
💡Pro tip: Two lenders could analyze the same score and produce widely different offers. This is exactly why shopping around for the best deal is essential. Try to get offers from at least 2-3 lenders.
How Appraisals Affect Maximum Cash-Out
Your home’s appraised value can significantly change your borrowing limit.
If appraisal is higher than expected:
LTV drops
Cash-out increases
Pricing may improve
If appraisal is lower:
Borrowing limit shrinks
LTV may exceed the limit
Loan may be denied or require cash at closing
How Credit Score Affects Cash-Out Limits
Even if LTV rules allow a certain maximum, your credit score can impact:
Whether a lender will approve the loan
How much risk-based pricing adds to your rate
Whether you qualify for higher LTV tiers (especially VA)
Better credit = higher approval odds + potentially more cash.
How Debt-to-Income Ratio (DTI) Affects Limits
Every lender has different DTI requirements, but in general, expect:
≤ 43% (conventional)
≤ 50% (FHA)
Flexible for VA
≤ 40–43% (jumbo)
If your DTI is too high, lenders may:
Approve a smaller loan
Reduce your cash-out
Require paying off certain debts at closing
When High Cash-Out Limits May Make Sense
A high cash-out limit is helpful when you’re funding:
✔ Major home renovations
✔ ADU or addition projects
✔ Debt consolidation
✔ Tuition or medical expenses
✔ Investment opportunities
Especially for VA borrowers, accessing 90–100% LTV can unlock unique financial flexibility.
💡 Pro Tip: If you need to maximize your cash out, don't lose your good pricing to a 0.25% rate markup that shouldn't exist. Before signing, upload your Loan Estimate to Fincast to ensure you have a competitive offer.
When High Cash-Out Limits Don’t Make Sense
Avoid maxing out your cash-out potential if:
❌ You plan to move soon
❌ You’re taking cash for non-essential spending
❌ Your new mortgage rate will be much higher
❌ You’re draining too much equity
Staying below the maximum LTV can better protect you if home prices fall.
How Fincast Helps You Get the Most Competitive Rate
Cash-out refinance limits and pricing vary widely among lenders—especially at high LTV ranges.
After you receive a Loan Estimate from any lender, upload it to Fincast to see if you have other competitive offers. Here’s how:
1️⃣ Upload your Loan Estimate (no extra credit pulls)
2️⃣ Analyze your rate, fees, PMI/MIP, and cash-out potential
3️⃣ Allow vetted lenders to make competing offers (if applicable)
4️⃣ Choose the lender offering the most cash-out at the lowest total cost
💡 Pro Tip: Even a small rate improvement can increase your cash-out amount and slash long-term interest costs.
FAQs
1. What is the highest cash-out LTV allowed?
The average lender allows a cash-out LTV of up to 80%, but there are some exceptions, such as VA loans, which may allow higher LTVs.
2. Can I get cash-out on an investment property?
Yes, but with lower LTV limits (typically 65–75%), depending on the lender.
3. Can jumbo loans be used for cash-out?
Yes, but limits are strict (60–70% LTV) and credit requirements are high.
4. Does the cash-out refinance require an appraisal?
Almost always, yes, but check with your lender to be sure.
5. How do I estimate my own cash-out limit?
Multiply your home value by your loan type’s max LTV, subtract your mortgage balance, and account for closing costs.
Bottom Line
Maximum cash-out refinance limits depend heavily on your loan type — and understanding those rules helps you estimate your real borrowing power. VA loans offer the highest potential, conventional and FHA provide stable middle-ground limits, and jumbo loans are the most restrictive.
You’re in the best position when you:
✅ Know your loan type’s LTV limit
✅ Calculate your home’s equity accurately
✅ Compare lender pricing and cash-out amounts
Pro Tips (Save These!)
💡 Always calculate your LTV before applying
📊 FHA and conventional top out at 80% LTV
📈 VA may allow 90–100% depending on the lender
⚠ Jumbo loans have strict LTV and credit rules
🚀 Use Fincast to compare and maximize your cash-out
Action Checklist
Identify your loan type
Estimate your home’s current value
Calculate your potential maximum loan amount
Compare LTV rules by loan program
Request a Loan Estimate from your lender
Upload your Loan Estimate to Fincast
Choose the lender offering the highest cash-out with the best pricing
👉 Ready to find your real cash-out limit?
Upload your Loan Estimate to Fincast to determine if you have a competitive offer. Rates change daily, so the faster you act, the sooner you can secure a competitive deal.
This article is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage requirements vary by lender and individual circumstances. Consult with licensed professionals for your specific situation.
Disclaimer: Nothing in this content should be considered financial advice. The examples and data shared are for general information only and may not reflect your personal situation. We do not guarantee the accuracy or completeness of the information provided. Always do your own research and speak with a qualified financial advisor before making any financial decisions.
