How much equity can I borrow from my home?

Most lenders let you borrow up to 80-90% of your home's appraised value, minus your existing mortgage balance. This is called your combined loan-to-value ratio, or CLTV. The exact percentage depends on the lender, your credit, and whether you're applying for a home equity loan, a HELOC, or a cash-out refinance.

CLTV stands for combined loan-to-value ratio. It's the total of all loans secured by your home (your existing mortgage plus the new loan or line you're applying for) divided by your home's appraised value. Lenders cap this ratio, typically at 80-90%, to keep a cushion of equity in the home.

Does my credit score affect how much I can borrow?

Yes. While the CLTV limit sets the ceiling, your credit score, income, and debt-to-income ratio determine whether you actually qualify for that maximum. A lower credit score or a debt-to-income ratio above roughly 43% often means a lender approves you for less than the CLTV ceiling, even if you have plenty of equity on paper.

Can I borrow 100% of my home's equity?

Generally no. Lenders keep a cushion, usually 10-20% of the home's value, as protection against a market downturn or the costs of a potential foreclosure. This is why most CLTV limits top out around 80-90% rather than 100%.

Is the maximum amount different for a HELOC versus a home equity loan?

The CLTV limits are usually similar or nearly identical between the two, though a HELOC's limit can run slightly higher at some lenders since it's a revolving line rather than a lump-sum loan. The bigger differences between the two are how you access the money and how the interest rate works, not how much you can borrow.

How Much Equity Can You Borrow From Your Home?

Lenders don't lend against your full equity — here's the formula they actually use, and what can push your offer lower.

If your home is worth $500,000 and you owe $300,000, you technically have $200,000 in equity. But that doesn't mean a lender will hand you a $200,000 home equity loan or HELOC. Lenders cap how much of your equity you can borrow against, using a calculation called the combined loan-to-value ratio, or CLTV.

The formula lenders use

The math is straightforward once you know the pieces:

(Home value × lender's max CLTV%) − current mortgage balance = maximum amount you can borrow

Example	Amount
Home's appraised value	$500,000
Lender's max CLTV	85%
Value × CLTV (85%)	$425,000
Existing mortgage balance	−$300,000
Maximum borrowing amount	$125,000

Typical CLTV limits by loan type

Loan type	Typical max CLTV
Home equity loan	80% – 85%
HELOC	80% – 90%
Cash-out refinance	Around 80%

These are typical ranges, not universal rules — some lenders and credit unions go higher for borrowers with strong credit and low existing debt, while others are more conservative. It's worth checking with more than one lender if you're close to a limit.

Plug in your own numbers with the Home Equity Calculator to estimate your available borrowing amount.

Other factors that affect your amount

CLTV sets the ceiling, but it isn't the only thing lenders look at. You can have plenty of equity on paper and still be approved for less than the maximum if:

Your credit score is on the lower end. Most lenders want at least fair-to-good credit for a home equity product; stronger scores unlock both higher amounts and better rates.
Your debt-to-income ratio is high. Lenders generally want your total monthly debt payments, including the new loan, to stay under roughly 43% of your gross income.
Your income is hard to verify. Self-employed borrowers or those with irregular income sometimes see more conservative offers.
The appraisal comes in lower than expected. Your available equity is based on the appraised value, not your own estimate or a real estate site's automated valuation.

Step-by-step: estimating your own maximum

Get a realistic home value. A recent appraisal is most accurate; a few real estate sites' automated estimates can give you a rough starting point.
Check your current mortgage payoff balance — not your original loan amount, your current remaining balance, which you can find on your latest mortgage statement.
Multiply your home's value by 80-85% as a conservative planning estimate (lenders will confirm their own exact CLTV limit during underwriting).
Subtract your mortgage balance from that number to get your rough maximum borrowing amount.
Get quotes from a few lenders. CLTV limits, rates, and fees vary enough between lenders that it's worth comparing at least two or three.

Home equity loan or HELOC — does it change the amount?

The CLTV limits between the two are usually close, though some lenders allow a slightly higher CLTV for a HELOC since it's a revolving line rather than a lump sum paid out all at once. The bigger differences are in how you access the money and how the rate works — see Home Equity Loan vs. HELOC for a full comparison.

Comparing your options? See Home Equity Loan vs. HELOC to decide which structure fits your plans.

What if you're offered less than the maximum?

It's common to be approved for less than the CLTV ceiling suggests. If that happens, ask the lender specifically which factor limited the offer — it's usually debt-to-income ratio, credit score, or a conservative internal policy rather than a hard rule, and knowing which one it is tells you what to work on if you want to reapply for more later, or where to look for a different lender with a better fit for your situation.

This article is general information, not lending advice. CLTV limits, underwriting standards, and rates vary by lender and change over time — confirm current terms directly with your lender.