FHA rate-and-term refinances top out at 97.75% for no-cash-back scenarios, VA loans are governed by reasonable value rather than a fixed percentage, and USDA refinances typically exclude cash-out from your home’s equity entirely. Your actual ceiling depends on transaction type, occupancy, units financed, any subordinate liens, and the lender’s own overlays on top of program rules.
TL;DR:
- Most conventional limited cash-out refinances can reach nearly 97% LTV for fixed-rate loans of 30 years or less, but higher-balance and adjustable-rate loans have stricter caps.
- FHA rate-and-term refinances allow up to 97.75% LTV with no cash back beyond small tolerances, improving options for borrowers with higher LTVs.
- VA refinance limits depend on reasonable value rather than a fixed percentage, with actual approval often influenced by lender overlays beyond guideline caps.
- USDA refinances generally do not permit cash-out from home equity, prioritizing affordable rural homeownership over accessing equity.
- Borrowers aiming for 90% LTV typically qualify under FHA and conventional limited cash-out programs, but cash-out options at 90% are often restricted to around 80% by lenders.
Table of Contents
- Maximum LTV by refinance program at a glance
- How LTV, CLTV, and HCLTV are actually calculated
- Program rules that set your maximum LTV
- Can you refinance at 90% LTV?
- How to check your refinance LTV before you apply
- Chasing the highest LTV isn’t always the smartest move
- Getting help when your equity is right at the edge
- Sources
- FAQ
Maximum LTV by refinance program at a glance
Before you talk to a lender, it helps to see where each program typically lands. The numbers below reflect published policy, though individual lenders can apply stricter overlays.
| Program | Typical maximum LTV | Key constraint |
|---|---|---|
| Conventional limited cash-out | 95.01% to 97% | Fixed-rate loan, term of 30 years or less, per the Fannie Mae Selling Guide |
| Conventional cash-out | Around 80% | One-unit primary residence, per the Fannie Mae Selling Guide |
| FHA rate-and-term | 97.75% | No cash back beyond small tolerances, per HUD/FHA guidance |
| FHA streamline | Varies by path | Appraisal may be optional, which changes how CLTV is handled |
| VA refinance | Based on reasonable value | No guaranty above 100% of reasonable value, per VA Circular 26-18-30 |
| USDA refinance | No cash-out from equity | Streamlined-assist paths exist for current USDA borrowers |
Each row is a starting point, not a guarantee. Your loan amount, occupancy, and number of units financed can move the ceiling up or down within the same program.
How LTV, CLTV, and HCLTV are actually calculated
Loan-to-value is your new loan amount divided by the home’s appraised value. If closing costs get rolled into the loan, that raises the numerator and pushes your LTV higher, sometimes past the tier you expected.
Combined loan-to-value, or CLTV, adds every lien on the property, including a home equity line of credit, and divides that total by the appraised value. HCLTV does something similar but accounts for the full drawable limit on a HELOC rather than just the current balance. This is why a HELOC you rarely use can still tank your refinance math.
Appraised value usually comes from a licensed appraiser’s visit, though some conventional refinances qualify for an appraisal waiver based on an automated valuation model, which speeds up the process but is not available in every case, as the Fannie Mae guidance on calculating loan value ratios explains.
Say your home appraises for $400,000 and you owe $320,000 on your first mortgage.
Roughly a third of homeowners carry a second lien or HELOC that changes their real CLTV picture, according to broader industry commentary on equity strategies. Gather these documents before you call a lender:
- Your current mortgage payoff statement.
- Any HELOC or second-lien statement showing balance and limit.
- A recent appraisal or a list of comparable sales in your area.
- Recent pay stubs, tax returns, or other income documentation.
Program rules that set your maximum LTV
Each loan type has its own logic for why the ceiling sits where it does, and knowing the reasoning helps you pick the right program the first time.
Conventional loans through Fannie Mae and Freddie Mac offer the most tiered structure. The Fannie Mae Selling Guide and its companion Eligibility Matrix show that limited cash-out refinances can reach 95.01% to 97% LTV, but only for fixed-rate loans with terms of 30 years or less. High-balance loans and adjustable-rate mortgages are excluded from that top tier. A separate high LTV refinance option modifies these rules further, limiting the new loan amount to the payoff plus limited closing costs and up to $250 cash back, according to Fannie Mae’s high LTV refinance policy.
FHA loans allow rate-and-term refinances up to 97.75% LTV with no cash back beyond minor tolerances, per HUD/FHA handbook guidance. FHA streamline refinances follow a different logic: some paths skip the appraisal entirely, which shifts the qualifying test away from LTV and toward payment history and net tangible benefit. When a subordinate lien exists, FHA handles CLTV treatment differently depending on which streamline path you use.
VA refinances work on reasonable value rather than a flat percentage. VA circulars state the guaranty will not cover a loan exceeding 100% of reasonable value, and cash-out refinances must pass a net tangible benefit test that documents real savings or improved terms for the borrower, according to VA Circular 26-18-30. Lenders frequently apply their own overlays on top of that ceiling, so the program limit and what you can actually get approved for can differ. Our VA loans page walks through how those overlays typically work.
USDA refinances generally will not let you pull cash from your home’s equity. Streamlined-assist options exist for borrowers who already have a USDA loan and want a lower payment, but the USDA Rural Development guidance makes clear these programs prioritize affordable rural homeownership over equity access.
Can you refinance at 90% LTV?
Yes, though which program gets you there depends on your goals.
- FHA rate-and-term refinances can go up to 97.75% LTV, so 90% typically clears easily if you meet credit and income requirements.
- Conventional limited cash-out refinances can reach 95.01% to 97% on qualifying fixed-rate loans, putting 90% well within range.
- Conventional cash-out at 90% LTV is harder. Most lenders cap cash-out near 80%, so pulling equity at 90% usually means switching to FHA instead.
- Negative equity situations, where you owe more than the home is worth, generally rule out standard refinancing until you pay down the balance or the market shifts in your favor.
If a subordinate lien pushes your CLTV above what your first program allows, ask about a subordination agreement with your second-lien holder, or consider paying down that balance before applying. Borrowers who purchased recently in cash may also qualify for delayed financing, which lets you refinance sooner than typical seasoning rules would allow.
Pro Tip: Ask every lender you talk to for their specific overlay on your program, since two lenders quoting the same loan type can approve different maximum LTVs.
How to check your refinance LTV before you apply
Start by pulling your current mortgage payoff amount and any subordinate lien balances, then get an updated value estimate through an appraisal or a lender’s automated valuation tool. From there, calculate your LTV, CLTV, and HCLTV and compare each against the program table above to see where you land.
Confirm these underwriting factors too, since they interact with your LTV:
- Loan seasoning requirements, which vary by program and transaction type.
- Your credit score, which can shift which LTV tier you qualify for.
- Your debt-to-income ratio, which lenders weigh alongside LTV.
- Whether mortgage insurance applies, and how a higher LTV affects its cost.
Our refinance calculator can help you estimate where your numbers fall before you commit to an appraisal. Specialty support for VA and DSCR loans may be available if your situation needs more than a standard conventional path.
Pro Tip: Get a written conditional eligibility statement from a lender before you schedule and pay for an appraisal, so you know your program fits before spending money on valuation.
Chasing the highest LTV isn’t always the smartest move
A refinance approved at the maximum LTV your program allows is not automatically the right refinance.
If you have a subordinate lien or a complicated equity picture, get a professional to run the actual numbers before you assume the program limit is your target. Documented savings over the life of the loan matter more than hitting a round number on paper.
— David Mordue
Getting help when your equity is right at the edge
When your LTV sits close to a program’s ceiling, timing and guidance matter more than usual. A fully online application can get you an answer without the back-and-forth that slows down borderline cases, and personalized consultations mean you get a read on your real options before you commit to an appraisal.
This approach fits homeowners weighing FHA against conventional, veterans deciding between VA program limits and lender overlays, or anyone who needs clarity fast because rates are moving. A few ways to get started:
- Run your numbers through the refinance calculator to see estimated savings.
- Review FHA loan options if your LTV pushes past conventional limits.
- Start an application or request a rate comparison at Davidmordue.
If your equity is borderline, a direct conversation beats guessing. Visit Home Purchase, Refinance to see how the process works for your situation.
This article is general information, not a substitute for advice from a qualified financial advisor. Consult a qualified financial professional about your own circumstances before acting on anything here.
FAQ
What is the $100,000 loophole for family loans?
This term refers to a federal tax provision allowing family members to lend money at below-market interest without triggering certain imputed interest rules up to a specific threshold. It is unrelated to mortgage refinance LTV limits and does not affect how lenders calculate your loan-to-value ratio.
What is the 2% rule for refinancing?
It is a rough rule of thumb, not a lender requirement, and the real math depends on your closing costs, loan balance, and how long you plan to stay in the home.
Can I refinance at 90% LTV?
Yes, in most cases. FHA rate-and-term refinances allow up to 97.75% LTV, and conventional limited cash-out refinances can reach 95.01% to 97% on qualifying fixed-rate loans, so 90% typically fits within either program.
Is a 67% LTV good?
It gives you flexibility to choose between cash-out and rate-and-term refinances without bumping into program limits.