Home Equity Financing

How Much HELOC Can I Get?Home Equity Calculator & LTV Guide

Your credit line comes down to one number: how much equity you have that a lender is willing to let you borrow against. Most lenders cap you at 80–85% of your home's value across all loans combined.

Saman Khanian, author and mortgage professional at Equitable Lending

Saman Khanian

Author & Mortgage Professional

Updated January 2026
11 min read
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Modern suburban home with a well-maintained lawn and walkway

80–85%

Max CLTV

Use the calculator below

Calculator

Home Equity Calculator

Adjust the three numbers below to see your estimated credit line. This uses the same CLTV math lenders apply — it is an estimate, not an offer.

Your Numbers

Lender CLTV Limit

Most lenders cap combined loan-to-value at 85%. Some go to 90% for strong borrowers; some stop at 80%.

Your Estimate

Estimated HELOC Available

$172,500

Current Equity$270,000
Current LTV58.5%
Max Total Debt$552,500
CLTV Limit85%
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This calculator is an estimate, not a pre-approval. Your actual credit line depends on an appraisal, your credit score, your debt-to-income ratio, and the specific lender's guidelines. Lenders use their own appraised value — which may differ from your estimate — and many set a minimum HELOC amount. Call (877) 885-0111 for a real number on your property.

The Math

How Lenders Calculate Your HELOC

Two ratios decide everything. Understanding the difference between LTV and CLTV is the key to knowing why your credit line may be smaller than you expect.

First Mortgage Only

LTV

Mortgage Balance ÷ Home Value

Loan-to-Value measures your first mortgage against the property value. A $380,000 balance on a $650,000 home is 58.5% LTV. Lenders use this to assess risk on the primary loan.

All Loans Combined

CLTV

(1st + 2nd + HELOC) ÷ Home Value

Combined Loan-to-Value adds every lien on the property. This is the number that caps your HELOC — the limit applies to the total, not just the new line.

The Three-Step Formula

Step 1

Max Total Debt

Home Value × CLTV Limit (usually 80–85%)

Step 2

Subtract Your Mortgage

Max Total Debt − Existing Mortgage Balance

Step 3

That's Your Line

The remainder is your available HELOC amount.

Worked example: $650,000 home × 85% = $552,500 max total debt. Minus a $380,000 mortgage leaves $172,500 available for a HELOC.

Your equity is not your credit line. If you own a $650,000 home outright, your equity is $650,000 — but at an 85% CLTV the most you can borrow against is $552,500. The lender always keeps a cushion, which is why the answer to "how much can I get" is never simply "my equity."

Qualification

2026 HELOC Requirements

How much you can borrow and whether you qualify are two different questions. Here is what lenders check — and how your credit score changes the ceiling.

How Your Credit Score Sets Your CLTV

760+

Up to 90% CLTV

Best pricing and the highest available credit line. Often approved with minimal documentation friction.

700 – 759

Up to 85% CLTV

Strong approval odds at competitive rates. This is the sweet spot for most borrowers.

660 – 699

Up to 80% CLTV

Approved at moderate rates with a somewhat lower CLTV ceiling. Expect tighter scrutiny on DTI.

620 – 659

Up to 75–80% CLTV

Available, but with higher rates and a reduced line. Larger reserves are commonly required.

Minimum

At Least 15–20% Equity

Lenders generally require you to retain 15–20% equity after the HELOC is opened. If your first mortgage is already above 80% LTV, there is usually nothing left to lend against.

Below 43%

Debt-to-Income Ratio

Your DTI includes the new HELOC payment — often calculated at the fully-drawn amount, not just what you plan to use. This surprises many borrowers and reduces the line they qualify for.

620+ Typically

Credit Score

Most lenders want 620 or higher, with better pricing starting around 700. Some credit unions and portfolio lenders go lower for members with strong equity.

12 Months Clean

Payment History

No late payments in the past 12 months on your mortgage or other accounts. A single 30-day late in that window can trigger a decline or a lower line.

W-2 or Bank Statements

Income Verification

W-2 borrowers provide pay stubs and tax returns. Self-employed borrowers can often qualify using 12–24 months of bank statements on stated-income programs.

Primary Homes

Property Type & Occupancy

Primary residences get the best terms. Second homes and investment properties are eligible with some lenders, usually at higher rates and lower CLTV limits.

Homeowners reviewing renovation plans funded by a home equity line of credit
What Borrowers Use It For

Renovations, debt consolidation, and reserves

What Can You Use a HELOC For?

A HELOC is a flexible revolving line — you draw what you need, when you need it, and typically pay interest only on the outstanding balance during the draw period. Common uses:

  • Home renovations and additions that build value
  • Consolidating high-interest credit card debt
  • A bridge for a down payment on a second property
  • Emergency reserves you can draw on when needed
  • Tuition, medical expenses, or major life events
Explore our HELOC programs
Worked Examples

What This Looks Like in Practice

Four real-world scenarios showing how home value, mortgage balance, and credit score combine to set a credit line.

Example

Home Value
$500,000
Mortgage
$250,000
CLTV Cap
85%

Estimated HELOC

$175,000

Example

Home Value
$650,000
Mortgage
$380,000
CLTV Cap
85%

Estimated HELOC

$172,500

Example

Home Value
$850,000
Mortgage
$600,000
CLTV Cap
80%

Estimated HELOC

$80,000

Example

Home Value
$1,200,000
Mortgage
$500,000
CLTV Cap
85%

Estimated HELOC

$520,000

Notice the pattern. Your available line depends far more on how much you still owe than on how expensive the home is. A $1.2M home with a $500K balance yields a larger line than an $850K home with a $600K balance — because the equity is what matters, not the price.

Appraised value can change the answer. Lenders order their own appraisal. If it comes in lower than your estimate, your CLTV ceiling drops and so does your line — which is why a recent appraisal or strong comparable sales matter.

Comparing Options

HELOC vs. Cash-Out Refinance vs. Home Equity Loan

All three tap your equity, but they work very differently. The right choice depends on whether you need a lump sum or a flexible line — and whether you want a fixed rate.

FeatureHELOCCash-Out RefinanceHome Equity Loan
How You Get the MoneyDraw as neededOne lump sumOne lump sum
Typical Interest RateVariableFixedFixed
Payment StructureInterest-only draw periodPrincipal + interestPrincipal + interest
Closing CostsLow, often waivedFull closing costsModerate
Typical Loan Term10-yr draw + 20-yr repay15–30 years5–30 years
Best ForOngoing or uncertain needsLarge one-time expenseA specific fixed project

Choose a HELOC When

  • You are not sure how much you will need, or you will need it in stages
  • You want to pay interest only on what you actually draw
  • Your existing first mortgage has a low rate you want to keep
  • You want to avoid the closing costs of a full refinance

Consider Something Else When

  • You need one fixed lump sum and want a payment that never changes
  • Your current mortgage rate is higher than today's — a cash-out refinance may lower it
  • You are uncomfortable with a variable rate that can rise
  • You only need a small amount — a personal loan may be simpler
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Answers

Frequently Asked Questions

What homeowners ask us most about HELOCs and home equity limits.

How much HELOC can I get?
Most lenders let you borrow up to 80–85% of your home's appraised value across all loans combined. The formula is: (Home Value × CLTV Limit) − Your Mortgage Balance = Available HELOC. On a $650,000 home with a $380,000 mortgage at an 85% CLTV, that is $172,500. Your actual line also depends on your credit score and debt-to-income ratio.
What is the difference between LTV and CLTV?
LTV (Loan-to-Value) measures only your first mortgage against the home's value. CLTV (Combined Loan-to-Value) adds every lien on the property — the first mortgage plus the new HELOC plus any other loans. CLTV is the number that caps your credit line, because the limit applies to the total debt, not just the new line.
What credit score do I need for a HELOC in 2026?
Most lenders require a minimum of 620, with better pricing starting around 700 and the highest credit lines reserved for scores above 760. Higher scores typically unlock a higher CLTV ceiling — a 760+ borrower may qualify for 90% CLTV while a 650 borrower is capped at 80%.
Can I get a HELOC with no equity or very little equity?
Generally no. Lenders require you to retain roughly 15–20% equity after the HELOC is opened, so if your mortgage is already above 80% of your home's value there is usually nothing left to borrow against. Some lenders offer 90% or even 100% CLTV programs, but they are limited and carry higher rates.
Does a HELOC affect my debt-to-income ratio?
Yes, and this catches borrowers by surprise. Lenders typically calculate your DTI using the fully-drawn HELOC amount — the entire credit line, not just the portion you plan to use. A $150,000 line means a payment calculated on $150,000, which can significantly reduce how large a line you qualify for.
How much does a HELOC cost to open?
Closing costs are usually much lower than a full refinance and many lenders waive them entirely for a HELOC. When they do apply, expect an appraisal fee, title search, and recording fees. Some lenders offer a no-cost HELOC in exchange for a slightly higher rate, or require you to keep the line open for a set period to avoid a penalty.
What happens when my HELOC draw period ends?
A typical HELOC has a 10-year draw period followed by a 20-year repayment period. During the draw period you can borrow, repay, and borrow again, usually making interest-only payments. When the draw period ends, you can no longer borrow and must begin repaying principal and interest — which means your payment increases, sometimes substantially.
Is a HELOC better than a cash-out refinance?
It depends on your goal. A HELOC is better when you need flexible access over time, want to keep a low first-mortgage rate, or want to avoid full closing costs. A cash-out refinance is better when you need a fixed lump sum, want a fixed rate and payment, or when today's rates are lower than your existing mortgage rate.
Saman Khanian, Chief Executive Officer at Equitable Lending
About the Author

Saman Khanian

Saman Khanian is a mortgage professional and the CEO of Equitable Lending, where he helps homeowners access their equity, self-employed borrowers, and real estate investors find financing that fits their real financial picture. He writes about HELOCs, second mortgages, cash-out refinancing, and mortgage strategies for homeowners at every stage.

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Disclosure: This article is for informational purposes only and does not constitute a loan commitment, rate quote, or financial advice. The calculator on this page produces an estimate for illustration only and is not a pre-approval, offer of credit, or guarantee of any credit line. HELOC guidelines, CLTV limits, rates, fees, and eligibility vary by lender, borrower, property, and state, and are subject to change. Actual credit lines depend on a lender-ordered appraisal and full underwriting. All loans are subject to credit approval. Equitable Lending is a licensed mortgage lender — see our Licensing Information page. NMLS: 1124483. Contact a licensed loan officer to discuss your specific scenario.

Turn Equity Into Opportunity

Find Out Your Real HELOC Number

The calculator gives you an estimate. A licensed loan officer can give you a real one — with current rates, your actual CLTV limit, and a credit line based on your full financial picture.

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