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 on a Second Home

Here is the straight answer on home equity on a second home for 2026 — what qualifies, the trade-offs, and how to get the best terms.

The short answer

A second home or vacation property can qualify for a home equity loan or HELOC, but lenders cap the combined LTV lower than on a primary residence, often around 70-75%. You will generally need stronger credit and reserves, and the property must be a true second home rather than a rental to get the better second-home pricing.

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 on a Second Home — is it possible in 2026?: A second home or vacation property can qualify for a home equity loan or HELOC, but lenders cap the combined LTV lower than on a primary residence, often around 70-75%. You will generally need stronger credit and reserves, and the property must be a true second home rather than a rental to get the better second-home pricing.
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.