The basic formula
Maximum loan equals appraised value times the program's maximum loan-to-value. Cash available equals that maximum minus your payoff, closing costs and other liens being paid.
Conventional
Fannie Mae and Freddie Mac generally cap cash-out on a one-unit primary residence at 80 percent loan-to-value, with lower limits for multi-unit homes and second homes.
How maximum loan-to-value works by program and how it limits the cash you can take.
FHA
FHA cash-out on a primary residence is generally capped at 80 percent loan-to-value, with ownership and payment-history requirements.
VA
VA allows cash-out up to 100 percent of the reasonable value for eligible veterans, though lenders may set lower limits. The funding fee may be financed on top.
Texas
Texas homestead equity loans are limited by the state constitution to 80 percent combined loan-to-value.
Use the calculator
Enter your value, payoff, limit and costs to estimate available cash, then confirm with a Loan Estimate.
Other liens
Any second mortgage, home equity line or other lien must be paid off or subordinated as part of the refinance, and those balances count against the maximum loan-to-value. Property tax liens and judgments may also need to be cleared. Order a title report early so there are no surprises about what must be paid at closing.
Sources
Sources checked 10/23/2026. General education only; confirm current rules with official sources and a licensed lender.