How much equity can you borrow? The lender formula, worked out
Many lenders let you borrow until all the loans on your home add up to a set percentage of its value, commonly 80% to 85%, with some going to 90% or higher. The formula is simple: home value × the lender's limit − what you owe = what you can borrow. On a $400,000 home with a $220,000 mortgage, an 80% limit leaves room for up to $100,000.
That limit is called combined loan-to-value, or CLTV, and it is the reason you can't borrow all of your equity. Below is how it works, what percentage of your equity it usually allows, how credit changes it, and the special 80% rule in Texas. Because each lender sets its own limit, the same home can qualify for very different amounts, so comparing lenders may change your number by tens of thousands of dollars.
Get your own number.
Enter your home value and what you owe in the home equity calculator. It shows your equity and how much you could borrow at 80%, 85% and 90% limits.
How much equity can I borrow from my home?
Start with two numbers: what your home is worth and what you owe on it. Your equity is the difference. The CFPB defines it as "the value of your home minus the amount you owe on your mortgage," and says that with a HELOC you can typically borrow up to a specified percentage of it.
Lenders don't set that percentage on your equity directly. They set a ceiling on all debt secured by the home, then subtract what you already owe. Whatever is left is your borrowing room. That's why two homeowners with the same equity can qualify for different amounts.
What is combined loan-to-value (CLTV)?
Combined loan-to-value compares every loan on the home to the home's value. Fannie Mae's Selling Guide defines it as the first mortgage plus any HELOC balance plus any other second mortgages, divided by the property's value. Two related terms you may see:
- LTV (loan-to-value): only your first mortgage divided by the home's value. A $220,000 mortgage on a $400,000 home is 55% LTV.
- HCLTV (home equity combined loan-to-value): like CLTV, but it counts the full HELOC credit line, whether or not you have drawn it (Fannie Mae).
When a lender says its HELOC limit is "80% CLTV," it means your current mortgage plus the new line can't exceed 80% of the home's value. Ask each lender how it counts a new line. Fannie Mae's HCLTV ratio and Texas law both count the full credit limit, not just what you draw.
The formula, step by step
Maximum you can borrow = (home value × CLTV limit) − all current loan balances
Share of your equity = maximum you can borrow ÷ (home value − loan balances)
- Estimate your home's value. The lender will use its own appraisal or valuation. A large national credit union, for example, says a current home valuation is required to determine how much you can borrow.
- Multiply by the lender's CLTV limit. This is the most all loans on the home can total.
- Subtract every loan secured by the home. Include your first mortgage and any existing home equity loan or line.
- The result is your maximum line or loan amount, before the lender reviews your credit and finances.
Worked example: a $400,000 home
Say your home appraises at $400,000 and you owe $220,000. Your equity is $180,000 and your current LTV is 55%. Here is what three common limits allow:
| CLTV limit | All loans can total | You could borrow |
|---|---|---|
| 80% | $320,000 | $100,000 |
| 85% | $340,000 | $120,000 |
| 90% | $360,000 | $140,000 |
The math for the first row: $400,000 × 80% = $320,000, minus the $220,000 you owe = $100,000. Same house, same equity, and a $40,000 spread between the 80% and 90% rows, based only on which limit a lender offers you. That is 56% of your equity at 80%, 67% at 85% and 78% at 90%.
What percent of your home equity can you borrow?
There is no single percentage of equity, because it depends on how much you already owe. The more of your home you own outright, the larger the share of your equity a CLTV limit unlocks. This table applies the formula above:
| You owe (share of value) | 80% limit | 85% limit | 90% limit |
|---|---|---|---|
| 0% (paid off) | 80% | 85% | 90% |
| 25% | 73% | 80% | 87% |
| 50% | 60% | 70% | 80% |
| 70% | 33% | 50% | 67% |
Read it as: if you owe half of what your home is worth and the lender's limit is 85%, you can borrow about 70% of your equity. If you owe 70% of the value and the limit is 80%, only about a third of your equity is available.
What CLTV limits do lenders use?
There is no single industry number. Each lender publishes its own limit, and it can change with the market. A few examples, as published on or around October 21, 2026:
- One credit union lists a maximum CLTV of 80% on its HELOCs and home equity loans (rates as of October 21, 2026).
- An online mortgage lender describes up to 80% as "a very common standard limit," 81% to 85% as "available with strong credit," 86% to 90% as offered by select lenders, and 95% or higher as rare (updated April 6, 2026).
- A large national credit union advertises HELOCs of "up to 95% of your home's equity," subject to approval (accessed October 21, 2026). Ask any lender how it defines a percentage like this before you compare.
- Texas law caps all home equity borrowing at 80% of the home's fair market value, for every lender (see below).
The practical takeaway: 80% is a very common ceiling, 81% to 85% is often available with strong credit, and limits above 90% exist at some lenders but are less common.
How your credit score affects how much you can borrow
Your credit score works on your limit in two ways. First, it decides whether you qualify at all: each lender sets a minimum, and a large national bank, for example, states a FICO score of 660 or higher for its HELOC. Second, higher limits often come with stricter credit requirements. The online mortgage lender above, for example, says higher scores "can unlock larger limits and better rates" and describes its 81% to 85% tier as "available with strong credit."
Credit also moves your rate. Lenders' advertised best rates assume strong scores and low loan-to-value ratios. One large bank's lowest HELOC rate assumes a FICO score of 730 or higher and 60% LTV, and one large credit union's assumes a 750 FICO score and a primary residence. Borrowing closer to the cap, or with a lower score, usually means a higher rate.
Other things that change your limit
- The appraised value. Every dollar of value counts at the limit percentage. If the appraisal comes in $20,000 lower than you expected, an 80% limit shrinks your room by $16,000.
- Other liens. An existing home equity loan or line counts against the same ceiling.
- The property. Some lenders price primary homes, second homes and rentals differently. One large credit union says its HELOC rates depend on occupancy, and another credit union's promotional HELOC rate is not available for rentals or second homes.
- Your overall finances. Equity is only part of the review. Lenders also look at your credit and your finances before setting a final line.
How much equity can you borrow in Texas?
Texas is the exception to "it depends on the lender." The Texas Constitution, Article XVI, Section 50(a)(6)(B), says a home equity loan plus all other debt secured by the homestead may not exceed 80% of the home's fair market value on the date the loan is made. For a HELOC, the 80% test applies to the full credit limit, which is fixed at closing and doesn't change during the life of the line (7 Tex. Admin. Code 153.86).
Example: a Texas home worth $350,000 with a $200,000 mortgage can carry total debt of $280,000, so the most any lender can offer is $80,000. Texas also requires a 12-day wait before closing and a $4,000 minimum per HELOC draw. Our Texas HELOC guide covers every rule.
Should you borrow the maximum?
Not necessarily. Your limit is the most a lender will allow, not a target. Two reasons to leave a cushion:
- Home values move. If prices fall 10% after you borrow to 90% CLTV, you would owe about as much as the house is worth.
- Your line can shrink. The CFPB says HELOCs generally let the lender freeze or reduce your line if your home's value falls or your finances get worse, so the unused part of a line is not guaranteed.
It also helps to know the payment before you borrow. Our guide on how a HELOC works shows how payments change when the draw period ends, and cash-out refinance vs HELOC compares the other main way to tap equity.
Frequently asked questions
How much equity do I have in my home?
Your equity is your home's current value minus everything you owe on it. A $400,000 home with a $220,000 mortgage has $180,000 in equity. The value a lender uses comes from its own appraisal or valuation, which may differ from online estimates.
Can I borrow 100% of my home equity?
Usually not with a HELOC or home equity loan. Lenders cap the total of all loans on the home at a percentage of its value, commonly 80% to 85%, so part of your equity always stays in the home. If your home is paid off and the cap is 80%, you can borrow up to 80% of your equity.
How much can I borrow against a paid-off house?
With no mortgage to subtract, the most you can borrow is the home's value times the lender's limit. At an 80% limit on a $300,000 home, that is up to $240,000, subject to the lender's review of your credit and finances.
Does the whole HELOC limit count, or only what I draw?
For setting your limit, plan on the full line counting. Fannie Mae's HCLTV ratio counts the full HELOC amount whether or not you have drawn it, and Texas applies its 80% cap to the full credit limit when the line opens.
Does my credit score change how much I can borrow?
It can. Each lender sets its own minimum score, and higher combined loan-to-value limits and lower rates often come with stricter credit requirements. A stronger score may unlock a larger limit and a better rate.
Does LenderMatch check my credit?
No. LenderMatch never pulls your credit. A lender you choose may check it, with your permission, when you apply.
See how much lenders could offer on your equity →
Sources
- Consumer Financial Protection Bureau, "What you should know about home equity lines of credit" (HELOC booklet, last updated August 2022)
- Fannie Mae Selling Guide, B2-1.2-02 Combined Loan-to-Value (CLTV) Ratios (12/04/2018) and B2-1.2-03 Home Equity Combined Loan-to-Value (HCLTV) Ratios (02/23/2016)
- Texas Constitution, Article XVI, Section 50(a)(6)(B), 50(a)(6)(M) and 50(t); 7 Texas Administrative Code 153.86 (accessed October 21, 2026)
- A credit union's home equity rates page (rates as of October 21, 2026)
- An online mortgage lender's guide to HELOC limits (updated April 6, 2026)
- A large national credit union's HELOC product page and home equity FAQs (accessed October 21, 2026)
- A large national bank's home equity line of credit page (rate disclosure as of September 17, 2026; accessed October 21, 2026)
Last reviewed October 21, 2026.