How Much Home Equity Loan Can You Get?

Feb 4, 2025

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Dreaming of a home renovation? Dealing with unexpected repairs? Consolidating debt? A home equity loan could be the financial solution you’re looking for. This type of loan allows you to tap into the equity you’ve built in your home, providing a lump sum you can use however you choose. But before diving in, it’s important to understand how much you can borrow and what factors you’ll need to consider.

Let’s break down the key elements that determine your borrowing limit and help you make an informed decision about taking advantage of your home’s value.

How Much Equity Can You Borrow On A Home Equity Loan? 

The answer depends on your lender, but most allow you to borrow between 80% and 85% of your home’s appraised value, minus your current mortgage balance. Some lenders may even stretch this limit to 90% of your home’s value.

Home equity loans have become a popular financing option for homeowners seeking to pay for significant home projects, such as renovations or repairs. According to First American Data and Analytics, these loans are increasingly being utilized to meet the rising demand for home improvements.

The Joint Center for Housing Studies at Harvard University states, “Annual spending for home improvements and maintenance will grow from $472 billion today to $477 billion by the third quarter of 2025.”

While you must spend the loan on home improvements for the interest to qualify as tax-deductible, you can generally use the funds for any purpose.

See What You Qualify For