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.
TL;DR: Most HELOCs require your combined LTV to stay under 80-85%. Calculate your maximum HELOC: (Home Value × 80%) - Current Mortgage. LTV under 70% gets you the best rates; over 80% makes approval difficult. Note: LTV is only one qualification metric—lenders also evaluate your debt-to-income ratio (DTI) alongside equity position.
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
- Reduce DTI - Lenders evaluate both LTV and DTI requirements
Frequently Asked Questions
What LTV do I need for HELOC approval?
Most lenders require combined LTV under 80% for the best terms, though some go to 85% CLTV. LTV under 70% qualifies you for the best rates (prime - 0.5%). Over 85% LTV makes approval very difficult.
How do I calculate my maximum HELOC amount?
Use this formula: (Home Value × Max LTV) - Current Mortgage. For a $450,000 home at 80% LTV with a $280,000 mortgage: ($450,000 × 0.80) - $280,000 = $80,000 maximum HELOC.
Does a higher LTV affect my HELOC rate?
Yes. LTV under 70% typically gets prime - 0.5%. At 70-80% LTV, expect prime rate. At 80-85% LTV, rates are prime + 0.5-1%. Higher LTV means higher risk for lenders, so they charge more.
What’s the difference between LTV and CLTV?
LTV (Loan-to-Value) refers to a single loan divided by home value, while CLTV (Combined Loan-to-Value) includes all liens on the property. For HELOC qualification, lenders primarily use CLTV because they consider both your existing mortgage and the new HELOC together. Example: If your first mortgage is $240,000, you want a $60,000 HELOC, and your home is worth $400,000, your CLTV is ($240,000 + $60,000) ÷ $400,000 = 75%.
Can I get a HELOC with LTV above 85%?
Getting a HELOC with CLTV above 85% is very difficult with most conventional lenders. Some credit unions or specialized lenders may offer high-LTV HELOCs up to 90-95%, but expect significantly higher rates (often Prime + 2-3%), stricter credit requirements (720+ score), and lower credit limits. Alternatively, consider an FHA cash-out refinance which allows up to 85% LTV, or focus on paying down your existing mortgage to improve your equity position before applying.