Refinancing & rates

Cash-Out Refinance Requirements: Do You Qualify?

Cash-out refinance approval comes down to four things: equity, credit, income, and the appraisal. Knowing where you stand on each avoids a surprise at underwriting.

Typical conventional requirements

  • Equity: leave at least 20% in the home after the cash-out, so a maximum 80% LTV.
  • Credit score: 620 minimum on most conventional programs, with real pricing improvements from 680 upward.
  • Debt-to-income: usually 43% or lower, including the new payment.
  • Seasoning: often six months of ownership before cash-out is allowed.
  • Appraisal: a full interior appraisal is standard on cash-out loans.

Government-backed options

FHA cash-out refinances allow up to 80% LTV with more flexible credit. VA cash-out refinances can reach higher LTVs for eligible veterans, sometimes to 100%.

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Frequently asked

620 is a common floor on conventional loans, but 700 and above unlocks materially better cash-out refinance rates.

Almost always. The lender needs a current value to calculate the maximum cash available.

Part of The Homeowner's Guide to Home Equity.

More on refinancing & rates

Cash-Out Refinance: How to Take Cash Out of Your Home

How a cash-out refinance works, how much cash you can take out of your home, what it costs, and when it beats a HELOC.

Cash-Out Refinance Rates: What Drives Your Number

What cash-out refinance rates depend on, how they compare with regular refinance rates, and how to get a low rate on your cash-out.

How to Compare Mortgage Refinance Rates the Right Way

A practical way to compare mortgage and refinance rates across lenders: APR, points, credit, and lock periods — so you can spot the genuinely low rate.