How Much Can I Borrow Against My Home?
LTV and CLTV Explained
Last verified: April 2026
The short answer: Most lenders let you borrow up to 80 to 85 percent of your home's current value, minus whatever you still owe on your mortgage. Some lenders go to 90 percent, but rates are worse.
What LTV means (plain English)
LTV stands for Loan to Value. It is simply the percentage of your home's value that is covered by loans. If your home is worth $400,000 and your mortgage balance is $320,000, your LTV is 80%.
What CLTV means (plain English)
CLTV stands for Combined Loan to Value. It is the same as LTV, but it adds up all loans on the property, including your first mortgage AND any new home equity loan or HELOC you are applying for. Lenders care about CLTV when you apply for a second loan, because they need to know the total claim on your home.
Three worked examples
How your home value is determined
The lender needs to know what your home is worth right now, not what you paid for it. They do this in one of two ways:
- Full appraisal: A licensed appraiser visits your home, inspects it, and compares it to recent sales of similar homes. This is the gold standard. It takes 5 to 10 days and typically costs $300 to $600, which you pay as part of closing costs.
- Desktop appraisal: An appraiser assesses your home without visiting, using available data. Less expensive and faster, but sometimes returns a more conservative value.
- Automated Valuation Model (AVM): Used by some online lenders. An algorithm estimates your home's value using public records and comparable sales. It is fast (instant) but can be inaccurate in markets with few recent sales or unusual properties.
Why lenders do not let you borrow 100% of your home's value
Lenders require you to keep some equity in your home as a safety buffer. If your home's value falls and you have borrowed right up to 100%, the lender's security becomes worthless. An 80 or 85% CLTV cap means that even if values drop by 15 to 20%, the lender can still recover its money in a foreclosure sale. The higher the cap a lender offers, the more risk they are taking, and the worse the rate they charge you in return.
CLTV caps by lender type
| Lender Type | Typical CLTV Cap | Notes |
|---|---|---|
| Traditional banks (large) | 80-85% | Stricter criteria, in-person option |
| Credit unions | 80-90% | Often best rates for members |
| Online lenders (Figure, Spring EQ) | 85-90% | Fastest close; AVM often used |
| Regional banks | 80-85% | Variable; some go to 90% with premium |