Key Takeaways
- Most HELOCs allow borrowing up to about 80 to 85 percent of your home’s value, with higher limits available from some lenders.
- Your HELOC limit is based on home equity, credit score, debt, interest rates, and your home’s appraisal.
- Higher HELOC limits usually mean higher interest rates and greater financial risk.
A home equity line of credit, or HELOC, allows homeowners to access cash by borrowing against the equity they have in their homes.
The maximum HELOC amount you can borrow will depend on the value of your home, what you owe on your current mortgage, and what percentage of the home value your lender will let you cash out. Most lenders let you borrow up to 85% but some will go higher—up to 90% or even 100%.
In this article (Skip to...)
- HELOC limits
- HELOC calculator
- How limits are set
- What impacts your HELOC amount?
- Alternatives to a HELOC
- HELOC limits FAQ
HELOC loan limits
HELOC limits are based on how much of your home’s value a lender is willing to let you borrow. Instead of approving a fixed amount, lenders look at your combined loan-to-value ratio, or CLTV, which compares your total mortgage debt to your home’s appraised value.
Most lenders cap HELOC borrowing at about 80% to 85% of your home’s value, including your existing mortgage balance. Some lenders allow higher limits, but borrowing more equity usually comes with higher interest rates and stricter requirements.
What to know about HELOC limits
- Typical maximum CLTV is 80% to 85%
- Limits above 90% are less common and usually offered by credit unions
- Higher CLTVs often mean higher interest rates
- Lenders may also set dollar caps, with HELOCs ranging from about $10,000 to $1 million or more
How lenders determine your maximum HELOC amount
The maximum HELOC amount you qualify for depends on your home equity, credit score, and your lender’s max HELOC LTV. Most lenders allow borrowing up to 85% LTV, but your specific HELOC limits vary.
To estimate your max HELOC amount, start by calculating your LTV. For example, if your home is worth $500,000 and you owe $350,000, your LTV is 70% ($350,000 ÷ $500,000).
Check your maximum HELOC amount. Start hereSince many lenders set a HELOC borrowing limit at 85% LTV, you may qualify to borrow against the remaining 15% of your home’s value. Let’s break down how a lender might calculate your HELOC amount limit in this scenario:
| Home Value | $500,000 |
| Current Mortgage Balance | $350,000 |
| Maximum LTV | 85% (0.85) |
| Maximum Total Balance (Mortgage + HELOC) | $425,000 ($500,000 x 0.85) |
| Maximum HELOC Amount (Total Balance - Mortgage) | $75,000 |
Numbers are for example purposes only. Your own loan amount will be different.
What other factors affect your HELOC limit?
- Credit score: Higher scores typically qualify you for better rates and higher borrowing limits, while lower scores can reduce how much you can borrow.
- Interest rates: Your rate depends on your financial profile and the prime rate, and higher rates can limit borrowing power.
- Debt-to-income ratio: Lenders look at how much of your income goes toward existing debts, with lower ratios allowing larger HELOCs.
- Home appraisal: A higher appraised home value increases your available equity and can raise your HELOC limit .
Alternatives to a HELOC
Homeowners looking for cash aren’t limited to a home equity line of credit—there are other financing options to consider.
Verify your HELOC eligibility. Start hereHome Equity Loan
A home equity loan uses your equity as collateral and pays out a lump sum with fixed monthly payments. Rates are often lower than personal loans, making this option well-suited for one-time expenses like renovations or debt consolidation.
Check your home equity loan options. Start hereCash-out refinance
With a cash-out refinance, you replace your current mortgage with a larger one and receive the difference in cash. This option can offer lower rates than a HELOC and simplifies repayment by combining everything into a single loan.
Personal loan
Personal loans don’t require home equity and provide fast access to a lump sum with fixed payments. While convenient, they usually come with higher interest rates and lower borrowing limits than equity-based options, making them better for smaller expenses.
Reverse mortgage
Available to homeowners age 62 and older, a reverse mortgage lets you tap home equity without monthly payments. The loan is repaid when the home is sold or no longer the primary residence, making it an option for retirees focused on cash flow rather than long-term equity.
Other options
Some homeowners consider a 401(k) loan, borrowing against life insurance, or using savings. Each comes with trade-offs, so it’s important to consider costs, risks, and long-term impact before deciding.
Check your cash-out refinance eligibility. Start here
HELOC loan limits FAQ
Verify your HELOC eligibility. Start hereThe max HELOC amount you can qualify for depends on your home equity, credit score, and lender’s loan-to-value ratio (LTV). Most lenders allow homeowners to borrow up to 80-90% LTV, minus their outstanding balance. For example, if your home is worth $500,000 and your lender allows a max HELOC LTV of 85%, your HELOC limit could be $75,000 if you owe $350,000 on your current mortgage balance.
Yes, some lenders offer a HELOC based on 90% LTV, but approval depends on your credit score, debt-to-income ratio, and overall personal finances. Borrowing at 90% LTV may result in a higher annual percentage rate and additional origination or annual fees.
Most lenders offer HELOCs up to 85%. Some credit unions offer high-LTV HELOCs up to 100% of your home’s value, but these are far less common.
Yes, your HELOC limits can change based on the real estate market, your credit score, and your lender’s policies. If your home’s market value drops, your lender may reduce your credit line, even if you haven’t borrowed the full amount. Changes in variable interest rates and DTI can also affect HELOC limits.
You may be able to increase your maximum HELOC amount limit by requesting a credit limit increase from your mortgage lender. This typically requires a new home appraisal, a credit score review, and proof of income. If your home equity has grown or your DTI has improved, you may qualify for a higher maximum amount.
The cost of a home equity line of credit depends on factors like your closing costs, annual fees, and whether you have a fixed rate. A HELOC loan may have a variable interest rate, meaning monthly payments can fluctuate. Some lenders charge an origination fee, and others require minimum withdrawals, which can add to your overall costs.
HELOCs typically have a draw period during which you can access funds, followed by a repayment period. The draw period may only require interest payments, but the repayment period requires principal and interest.
You can use your HELOC loan for home improvement projects, debt consolidation, real estate investments, or large expenses like education and medical bills. Many homeowners use a HELOC instead of a personal loan or credit card due to potentially lower fixed interest rates and flexible repayment terms.
