How Much Equity Can You Borrow?
Your borrowing power depends on your home's value, what you owe, and lender LTV limits. Here's how to calculate exactly how much you can access.
Quick Answer
Most lenders allow you to borrow up to 80–85% of your home's value, minus what you currently owe. This is called your Combined Loan-to-Value (CLTV) limit.
The Equity Borrowing Formula
Maximum Borrowable = (Home Value × Max CLTV%) − Current Mortgage Balance
Example Calculation
LTV Limits by Loan Type
Different loan products have different maximum CLTV limits. Here's what to expect:
HELOC
80–85%Variable rate, revolving credit
Home Equity Loan
80–85%Fixed rate, lump sum
Cash-Out Refinance
80%Replaces your first mortgage
VA Cash-Out
100%Veterans only, full equity access
Factors That Affect Your Borrowing Limit
Home Appraisal Value
Lenders use a professional appraisal (not Zillow estimates) to determine your home's value.
Credit Score
Higher scores (740+) may qualify for 85% CLTV. Lower scores may be limited to 80% or less.
Debt-to-Income Ratio
Even with equity, lenders want your total DTI under 43–50%.
Property Type
Primary residences get higher limits than investment properties (often capped at 75% CLTV).
Minimum Equity Requirements
To borrow against your home, you typically need at least 15–20% equity. This means your mortgage balance should be no more than 80–85% of your home's value before you can access a HELOC, home equity loan, or cash-out refinance.
When Can You Start Borrowing?
Calculate your borrowing power
Use our calculator to see how much equity you can access.
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