How much equity do I need?

Most home equity lenders cap combined loan-to-value at about 85% (cash-out at 80%), so you generally need to keep at least 15-20% equity in the home.

Will it touch my first mortgage?

A HELOC or home equity loan sits behind your existing mortgage and leaves its rate alone. Only a cash-out refinance replaces your first mortgage.

Home Equity With a 640 Credit Score

Home Equity With a 640 Credit Score is more doable than many homeowners assume. Below is what lenders actually require and how to put your strongest file forward.

The short answer

At a 640 credit score you clear the typical 620 threshold comfortably and should qualify with most home equity lenders. You may not reach the top rate tier reserved for 680 or 700+, but a 640 with solid income and equity will generally get you approved up to the standard 85% CLTV cap.

What home equity lenders look for

Equity: keep at least 15-20% — combined loan-to-value caps near 85% (cash-out at 80%).
Credit: roughly 620+ to qualify; 680+ unlocks the best HELOC pricing.
Debt-to-income: generally under ~43-50% including the new payment.
The right tool: a HELOC or home equity loan keeps your first mortgage; a cash-out refinance replaces it.

Rates and equity rules change. Join the free Cashout Equity alerts to hear when the numbers that affect this move.

Your next steps

Estimate your value and current balance to gauge equity, pull your credit, and get quotes from two or three lenders the same day. Then choose the product that fits — flexible (HELOC), fixed lump sum (home equity loan), or full refinance (cash-out).

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Frequently Asked Questions

Home Equity With a 640 Credit Score — is it possible in 2026?: At a 640 credit score you clear the typical 620 threshold comfortably and should qualify with most home equity lenders. You may not reach the top rate tier reserved for 680 or 700+, but a 640 with solid income and equity will generally get you approved up to the standard 85% CLTV cap.
How much equity do I need?: Most home equity lenders cap combined loan-to-value at about 85% (cash-out at 80%), so you generally need to keep at least 15-20% equity in the home.
Will it touch my first mortgage?: A HELOC or home equity loan sits behind your existing mortgage and leaves its rate alone. Only a cash-out refinance replaces your first mortgage.