Cash Out Refinance

A cash out refinance is a way to access the equity in your Home.

Credit Score: Typically, a minimum credit score of 620-640 is required, though higher scores (700+) may be needed for better rates or larger amounts.
Income: Lenders will assess the borrower’s income and financial stability to ensure they can handle the new loan payments. Documentation such as pay stubs, tax returns, and bank statements may be required.
Home Equity: You generally need to have at least 20% equity in your home to qualify for a cash-out refinance. Some lenders may allow less equity, but it can affect your loan terms.
Loan-to-Value (LTV) Ratio: Lenders typically allow a maximum LTV of 80%-90%, meaning you can borrow up to 80%-90% of your home’s current value (including the amount of your existing mortgage).
DTI Ratio: Lenders typically require a DTI ratio of 43%-50%, depending on the loan type and the borrower’s financial profile.