LTV-Based HELOC Eligibility Checker
Loan-to-value (LTV) ratio is the #1 factor in HELOC approval. Learn how LTV works and whether you qualify.
What Is LTV?
LTV = (All Mortgages ÷ Home Value) × 100
Example:
- Home value: $400,000
- Current mortgage: $280,000
- Combined LTV: 280,000 ÷ 400,000 = 70%
Maximum LTV by Loan Type
| Loan Type | Max Combined LTV | Max CLTV* |
|---|---|---|
| HELOC | 80% | 85% |
| Home Equity Loan | 80% | 85% |
| Cash-Out Refinance (Conventional) | 80% | N/A |
| Cash-Out Refinance (FHA) | 85% | N/A |
| VA Cash-Out | 90% | N/A |
*CLTV = Combined Loan-to-Value (includes all liens)
HELOC LTV Tiers
| LTV Range | Qualification | Typical Rate |
|---|---|---|
| Under 70% | Excellent | Prime - 0.5% |
| 70-80% | Good | Prime |
| 80-85% | Fair | Prime + 0.5-1% |
| Over 85% | Difficult | Prime + 1-2% (if available) |
Calculate Your Maximum HELOC
Formula: (Home Value × Max LTV) - Current Mortgage
Example:
- Home value: $450,000
- Max 80% LTV: $360,000
- Current mortgage: $280,000
- Maximum HELOC: $80,000
Our Calculator Shows Your LTV
Our tool displays:
- Current LTV percentage
- After-cash-out LTV
- Available equity at 80% LTV
- Risk assessment (PMI, qualifying challenges)
Tips to Improve HELOC Eligibility
- Pay down principal - Reduces LTV
- Home improvements - May increase appraised value
- Wait for appreciation - Market gains improve LTV
- Consider smaller amount - Stay under 80% LTV