Does a streamline change this?

Often yes — FHA, VA IRRRL, and USDA streamlines waive the appraisal and most income/credit checks because you already qualified for the original loan.

Refinance Loan-to-Value (LTV) Limits

Understanding refinance loan-to-value (ltv) limits up front prevents surprises in underwriting. The 2026 specifics are below.

The rule for 2026

Loan-to-value is your loan balance divided by the home's appraised value. Rate-and-term conventional refinances reach up to 95-97% LTV, FHA up to 97.75%, and VA up to 100%. Cash-out is tighter: 80% on conventional and FHA, up to 100% on VA, and lower still (70-75%) on second homes and investment properties.

Lenders work from agency guidelines (Fannie, Freddie, FHA, VA) but can add stricter "overlays." Meet the baseline first, then confirm whether your lender layers anything on top.

Documentation you'll typically need

Recent pay stubs and two years of W-2s or tax returns
Two months of bank statements
Your current mortgage statement and homeowners insurance
A recent appraisal (waived for many streamlines)

Refinance rules are periodically revised. Join the alerts to be told before changes affect your file.

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Frequently Asked Questions

Refinance Loan-to-Value (LTV) Limits — the bottom line for 2026?: Loan-to-value is your loan balance divided by the home's appraised value. Rate-and-term conventional refinances reach up to 95-97% LTV, FHA up to 97.75%, and VA up to 100%. Cash-out is tighter: 80% on conventional and FHA, up to 100% on VA, and lower still (70-75%) on second homes and investment properties.
Does a streamline change this?: Often yes — FHA, VA IRRRL, and USDA streamlines waive the appraisal and most income/credit checks because you already qualified for the original loan.