The answer might surprise you — and we’ll help you calculate it.

If you’re thinking about using a cash-out refinance to access money from your home’s value, the first thing you need to know is:

👉 How much equity do you need to qualify?

The good news? You don’t need to own your home free and clear — and most homeowners who’ve lived in their home a few years may already have enough equity to make it happen.

Let’s break it down so you know what lenders look for — and what’s possible in your specific situation.

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💡 What Is Home Equity?

Your home equity is the difference between:

• Your home’s current appraised value
  minus
• Your current mortgage balance

Example:

• Home value: $475,000
• Mortgage balance: $290,000
• Equity: $185,000

That’s the portion of your home you truly “own” — and a cash-out refinance lets you borrow against it.

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✅ How Much Equity Do You Need?

Most lenders, including PRMI, allow you to borrow up to 80% of your home’s value on a cash-out refinance.

That means you’ll need to leave at least 20% equity in the home after the new loan.

🧮 Example:

• Home value: $500,000
• 80% of value: $400,000
• Current loan balance: $300,000
• Maximum cash available: ~$100,000 (minus closing costs)

This is called your loan-to-value ratio (LTV) — and 80% is typically the limit for conventional cash-out refinances.

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🏠 What About FHA, VA, or Other Loans?

Here’s how the rules break down by loan type:

Loan Type	Max LTV for Cash-Out
Conventional	80%
FHA	80%
VA	Up to 90% (for eligible veterans)
USDA	No cash-out allowed

💡 VA loans offer more flexibility — great for veterans looking to access equity.

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🧠 What Else Affects Your Eligibility?

Besides equity, lenders will also look at:

• Your credit score
• Your debt-to-income (DTI) ratio
• Your income stability
• Your payment history

You don’t need a perfect profile — but the stronger your financial foundation, the more likely you’ll qualify for the amount you need.

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📉 Can You Get a Cash-Out Refi With Less Than 20% Equity?

In most cases, no — at least not on conventional or FHA loans.

If your equity is limited:

• We may explore other loan options like a HELOC
• We can help you estimate when you’ll hit the 20% mark
• You might consider paying down your balance or waiting for the market to rise

📘 PRMI will guide you with clarity — not push you into something that doesn’t serve your goals.

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🏢 Why PRMI?

As a direct lender, we:

• Accurately estimate your home’s value up front
• Show you how much equity you could access
• Handle the refinance in-house for a fast, smooth process

Whether you’re renovating, consolidating debt, or simply securing your future, we help you put your equity to work the smart way.

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👇 Want to Know How Much Cash You Could Pull From Your Home?

Let’s run the numbers based on your home’s value, balance, and goals — no pressure, just clarity.