Who this is for
When cash-out makes sense
Your rate is near market
You aren't giving up a great rate, so one loan is simpler.
Consolidating debt
Replace credit card or auto debt with a lower-rate mortgage, with a plan to stay out of debt.
Funding a project
Renovation, ADU or a down payment on a rental.
Investors recycling capital
Pull equity from a rental to buy the next one. DSCR cash-out →
Program highlights
Cash-out options
Conventional
Up to 80% of value on a one-unit primary home; lower for investment properties.
FHA
Up to 80% of value for owner-occupants.
VA
Eligible veterans can often go higher.
DSCR
Investors can qualify on rental income instead of personal income.
Qualification guidelines
What lenders look at
Typical guidelines across my lender network. Every file is different, and I will tell you exactly where you stand after a quick review.
| Factor | Typical requirement | Required? |
|---|---|---|
| Equity | At least 20% left after cash-out (conventional) | ✓ YES |
| Ownership time | Often 6–12 months seasoning | ✓ YES |
| Credit score | 620+ typical | ✓ YES |
| Appraisal | Usually required | ✓ YES |
| Use of cash | No restrictions on most programs | ✗ NOT RESTRICTED |
In Hawaii
Cash-out in Hawaii
- Big equity, big decision. Long-time Hawaii owners often have large equity and very low rates. Giving up a low rate is costly, so I always compare a HELOC.
- Condo eligibility is re-checked on a refinance.
- Funding an ʻohana unit? See construction and renovation.
How it works
From first call to closing
- Goal and amountHow much and what for.
- CompareCash-out vs HELOC vs doing nothing.
- Appraisal and approvalValue confirmed, file approved.
- FundsCash wired after closing (3 business days later on a primary home).
Common questions
Cash-Out Refinance FAQ
How much can I take out?
Conventional loans allow up to 80% of value on a one-unit primary home. Your new loan minus your current payoff and costs is roughly your cash.
Cash-out or HELOC?
If your current rate is well below today's rates, a HELOC usually costs less because it leaves your first mortgage alone.
Is there a waiting period?
Most programs require you to have owned the home for a period first, often 6–12 months.
When do I get the money?
On a primary residence, federal rescission rules give you three business days to cancel, so funds arrive after that.
Sources: Fannie Mae Selling Guide (B2-1.3-03, Eligibility Matrix); HUD Mortgagee Letter 2019-11; 12 CFR 1026.23 (right of rescission).
