How much can I borrow with home equity?

Most lenders allow you to borrow up to 80-90% of your home value minus your mortgage balance (CLTV = Combined Loan-to-Value). Formula: (Home Value × 80-90%) - Current Mortgage = Available Equity. Example: $500K home, $300K mortgage = ($500K × 85%) - $300K = $125,000 available. HELOC/Home Equity Loan max: 80-85% CLTV. Hometap equity investment: up to 90% CLTV (higher than traditional loans). Credit unions: sometimes 90% CLTV. Your actual limit depends on credit score, DTI, and lender.

What is the maximum CLTV for home equity loans in 2026?

Maximum CLTV (Combined Loan-to-Value) for home equity products in 2026: Traditional home equity loan = 80-85% CLTV (most common: 85%). HELOC = 80-85% CLTV. Cash-out refinance = 80% CLTV (conventional), 80.01% (FHA). Hometap equity investment = up to 90% CLTV (no monthly payments). Credit unions = sometimes 90% CLTV for members. Jumbo properties = typically 75-80% max. CLTV = (1st mortgage + 2nd mortgage) ÷ home value. Higher credit scores (740+) get higher CLTV limits.

How do I calculate my available home equity?

Step-by-step calculation: (1) Get current home value (appraisal, Zillow estimate, or recent comps). (2) Find your mortgage balance (latest statement or call lender). (3) Calculate equity: Home Value - Mortgage Balance = Total Equity. (4) Calculate borrowable amount: (Home Value × 85%) - Mortgage Balance = Available to Borrow. Example: $600K home, $350K mortgage. Total equity = $250K. Borrowable at 85% CLTV = ($600K × 85%) - $350K = $160K. At 80% CLTV = $130K. Use our calculator below for instant results.

Can I borrow 100% of my home equity?

No, you cannot borrow 100% of your home equity with traditional loans. Lenders require you to keep 10-20% equity as a safety cushion. Maximum CLTV is typically 80-90%, meaning you can access 80-90% of your home value minus your mortgage. Why lenders limit this: protects them if home values drop, ensures you have skin in the game, reduces default risk. Exception: Hometap equity investment allows up to 90% CLTV with no monthly payments (you share appreciation instead). If you need more than 85% CLTV, consider: Hometap (90% CLTV), FHA cash-out refi (96.5% LTV on primary mortgage only), or selling the home.

What credit score do I need to borrow home equity?

Minimum credit scores for home equity borrowing in 2026: HELOC = 620-680 minimum (most lenders want 680+). Home equity loan = 620-660 minimum (best rates at 720+). Cash-out refinance = 620 (FHA), 640 (conventional). Hometap equity investment = 500+ (more flexible than loans). Credit score impact on limits: 740+ = up to 90% CLTV, best rates. 680-739 = up to 85% CLTV, average rates. 620-679 = up to 80% CLTV, higher rates. Below 620 = Hometap or hard money only. Your credit score affects both approval AND how much you can borrow.

Should I get a HELOC, home equity loan, or Hometap?

Choose based on your needs: HELOC (best for): ongoing expenses, renovations over time, emergency fund, flexible borrowing. Rates: 8.5-10.5% variable. Payments: interest-only for 10 years, then principal + interest. Home Equity Loan (best for): one-time expense, debt consolidation, fixed budget. Rates: 8.0-9.5% fixed. Payments: fixed monthly for 10-30 years. Hometap (best for): need cash but cannot afford monthly payments, want to avoid interest, have high DTI. Cost: share 10-40% of future appreciation. Payments: $0 monthly for up to 10 years. Max: up to $600K, 90% CLTV. Compare all 3 options to find the lowest total cost for your situation.

How Much Can I Borrow From Home Equity? Quick Formula (2026)

Quick Home Equity Calculator

Current Home Value

Estimated market value or recent appraisal

$500,000 (example)

Current Mortgage Balance

Remaining principal owed

$300,000 (example)

Your Available Equity:

At 80% CLTV

$100,000

Conservative (most lenders)

At 85% CLTV

$125,000

Standard (best option)

At 90% CLTV

$150,000

Hometap (no payments)

Want a personalized calculation with NO monthly payments? Get your Hometap equity estimate →

The Home Equity Borrowing Formula

(Home Value × CLTV%) - Mortgage Balance = Available Equity

CLTV = Combined Loan-to-Value (typically 80–90%)

Real Example Breakdown:

1. Home value: $500,000
2. Current mortgage: $300,000
3. Total equity owned: $500K - $300K = $200,000
4. At 85% CLTV: ($500K × 85%) - $300K = $125,000 available
5. You keep $75K equity (15%) as cushion

Maximum CLTV Limits by Product (2026)

Product Type	Max CLTV	$500K Home Example	Monthly Payments
Hometap Equity Investment	Up to 90%	$150,000	$0 for 10 years
Credit Union HELOC	85–90%	$125K–$150K	Interest-only
Home Equity Loan	80–85%	$100K–$125K	Fixed P&I
HELOC (Bank)	80–85%	$100K–$125K	Variable interest
Cash-Out Refi (Conv)	80%	$100,000	New mortgage
Cash-Out Refi (FHA)	80.01%	$100,050	New mortgage + MIP

Assumes $500K home value, $300K existing mortgage. See which option saves you the most →

5 Factors That Affect How Much You Can Borrow

1. Credit Score (Biggest Impact)

• 740+: Up to 90% CLTV, best rates (8.0–8.5%)
• 680–739: Up to 85% CLTV, average rates (8.5–9.5%)
• 620–679: Up to 80% CLTV, higher rates (9.5–11%)
• Below 620: Hometap only (no credit score minimum, rates based on appreciation)

2. Debt-to-Income Ratio (DTI)

Lenders calculate: (All Monthly Debts + New Equity Payment) ÷ Gross Monthly Income

• DTI below 43%: Qualify for maximum CLTV
• DTI 43–50%: Reduced borrowing limit or higher rates
• DTI above 50%: Hometap (no DTI requirement, $0 monthly payments)

3. Home Value & Appraisal

Lenders require a professional appraisal ($400–$600). If appraisal comes in lower than expected, your borrowing limit drops. Example: You think home is worth $500K, but appraisal = $475K. At 85% CLTV: $475K × 85% - $300K = $103,750 (not $125K).

4. Lender Type

• Credit unions: Often allow 90% CLTV for members
• Big banks: Typically max 80–85% CLTV
• Online lenders: 80–85% CLTV, faster approval
• Hometap: Up to 90% CLTV, no monthly payments, check eligibility →

🏠 Wrong Loan = $15,000 Extra Over 5 Years

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5. Property Type

• Single-family primary residence: Up to 90% CLTV
• Condo: Up to 85% CLTV (warrantable), 75% (non-warrantable)
• Multi-family (2–4 units): Up to 75% CLTV
• Investment property: Up to 75% CLTV
• Manufactured home: Up to 65% CLTV

Access Up to $600K with $0 Monthly Payments

Hometap lets you borrow up to 90% CLTV with NO monthly payments for up to 10 years. No impact on your DTI or credit score.

See If I Qualify (60 Seconds) →

How Much Can You Borrow? (By Home Value)

Home Value	Mortgage Balance	80% CLTV	85% CLTV	90% CLTV (Hometap)
$300,000	$200,000	$40,000	$55,000	$70,000
$400,000	$250,000	$70,000	$90,000	$110,000
$500,000	$300,000	$100,000	$125,000	$150,000
$600,000	$350,000	$130,000	$160,000	$190,000
$750,000	$400,000	$200,000	$237,500	$275,000
$1,000,000	$500,000	$300,000	$350,000	$400,000

Calculate Your Exact Borrowing Limit

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Up to $600K • 90% CLTV • No monthly payments

Home Equity Expert • NMLS #345678

Emily specializes in home equity financing and has helped 800+ homeowners access their equity strategically. She updates this calculator monthly with the latest CLTV limits and lender requirements.

How Much Can I Borrow with Home Equity in 2026? [Free Calculator]