Qualification

Cash-Out Refinance Qualification:
Requirements to Get Approved in 2026

Lenders evaluate your credit score, home equity, debt-to-income ratio, and income stability to approve a cash-out refinance. Most require 620+ credit and 20%+ equity retained. Here's exactly what you need to qualify. Dream Financial Management since 1994.

Cash-Out Refinance Requirements by Loan Type

Requirement Conventional FHA Cash-Out VA Cash-Out
Min Credit Score 620 500 (10%+ equity), 580 (3.5%+ equity) No minimum (lenders typically 580-620)
Max LTV 80% 80% 100%
Max DTI 43-50% 43% (exceptions to 50%) 41% residual income test
Seasoning (ownership) 6 months 12 months 210 days / 7 payments
Mortgage Insurance PMI if LTV > 80% Upfront MIP + Annual MIP VA funding fee
Occupancy Primary residence Primary residence only Primary residence (must certify occupancy)

Documentation You'll Need

Pay Stubs (30 days)

Most recent pay stubs covering the last 30 days

Tax Returns (2 years)

Last two years of personal and business tax returns if self-employed

Bank Statements (2-3 months)

All pages of personal bank statements

W-2s (2 years)

Wage and tax statements for employment verification

Check Your Cash-Out Refinance Eligibility

Dream Financial Management pre-qualifies you across 500+ lenders to find the best cash-out refinance program for your qualifications. Free, no-obligation consultation.

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