Cash Out Equity 2026 Cash-Out Refinance, HELOC & Second-Lien Options
Updated November 2026
Cash Out Equity compares three ways to convert equity into funds: a cash-out refinance that replaces the first lien, a fixed home equity loan that sits behind it, and a revolving line priced off prime. The right structure depends on your existing rate, how much you need at once, and the combined loan-to-value your appraisal supports.
| Program | 2026 limit or basis | What to compare |
|---|---|---|
| Conventional cash-out | $832,750 conforming one-unit limit | 80% LTV cap, cash-out LLPAs, six-month seasoning |
| FHA cash-out | $541,287 national floor | 80% LTV cap, 12-month occupancy, upfront and annual MIP |
| VA cash-out | No statutory loan amount cap | Up to 100% LTV, funding fee tier, net tangible benefit test |
| Fixed home equity loan | 80% to 85% CLTV typical | Fixed rate, lighter closing costs, blended rate with the first |
| HELOC | 85% to 90% CLTV typical | Prime plus margin, draw period, repayment amortization |
Compare the blended rate across every lien rather than the headline rate on any single one. A second lien at a higher rate often beats refinancing a low-rate first, because a refinance reprices the entire balance.
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Loan Program Comparison: 2026 Benchmarks
Cash Out Equity 2026 Cash Out Refinance, HELOC & Second Lien Options — Compare remaining-term interest and closing costs with the new term; divide costs by positive monthly savings for a simple break-even, and account for financed fees.
Historical 2025 one-unit comparison: conforming $832,750; FHA floor $541,287. County and unit-count limits can differ.
| Loan program | Down payment / equity | 2026 one-unit baseline | Costs and page-specific comparison |
|---|---|---|---|
| Home Equity / Refinance | Equity and underwriting dependent | Property and lender dependent | Compare closing costs, term and break-even |
| Conventional | 3%–5% subject to eligibility | $832,750 | PMI generally below 20% down |
| FHA | 3.5% at 580+; 10% at 500–579 | $541,287 floor | 1.75% upfront MIP; 0.55% annual for >95% LTV, base loan ≤$726,200, term >15 years |
| VA | 0% for eligible borrowers | No VA limit with full entitlement | No monthly PMI; funding fee unless exempt |
| USDA | 0% for eligible borrowers | Income, address and repayment eligibility | Guarantee and annual fees; confirm current schedule |
| Jumbo | Lender-specific cash and reserves | Above applicable conforming limit | Lender-specific pricing and insurance |
Sources: FHFA limits; HUD FHA limits.
Editorial Methodology & Primary Sources
Verification date: Not recorded; check the primary source and lender timestamp before relying on an estimate.
Rate comparisons use participating lender feeds, not a whole-market survey or guaranteed offers. Freddie Mac PMMS is a market benchmark, not a personalized quote. Calculator models rely on published regulatory formulas and disclosed assumptions rather than fabricated first-person loan testing.
Monthly principal and interest use the amortization formula P × r / (1 − (1 + r)−n), where r is the monthly note rate and n is the number of payments; at zero interest use P / n. PITI adds monthly property taxes and homeowners insurance; PMI is separate. APR includes applicable finance charges under Regulation Z and is not the note rate used for payments. Compare lender Loan Estimates for actual APR and fees.
- Consumer Financial Protection Bureau (CFPB) — Loan Estimates, APR and borrower disclosures; Regulation Z.
- U.S. Department of Housing and Urban Development (HUD / FHA) — FHA program guidance.
- U.S. Department of Veterans Affairs (VA) — VA loan eligibility and benefits.
- Freddie Mac Primary Mortgage Market Survey (PMMS) — published rate benchmarks.
- U.S. Census state tax collections — state property tax benchmarks; confirm parcel-specific assessments and exemptions with the state revenue department and local assessor.
- Texas Department of Housing and Community Affairs / TDHCA — state housing finance and property tax authority.
- Texas Comptroller Property Tax — state housing finance and property tax authority.
The payment snapshot uses illustrative annual taxes of 1% of home price, $1,200 insurance and 0.5% PMI below 20% down, not verified local quotes. Other calculators disclose their inputs and assumptions. Published guidance and lender feeds may change independently; confirm current program rules, taxes and offers before a decision.