Does a HELOC have different rules than a cash-out?

Yes — HELOCs and home equity loans allow up to ~85% CLTV and often skip a full appraisal, while a cash-out refinance caps at 80% LTV and resets your first mortgage.

Credit Score for a Home Equity Loan or HELOC

Credit Score for a Home Equity Loan or HELOC is central to a smooth home equity approval — here are the 2026 rules and numbers.

The rule for 2026

A 620 FICO is roughly the floor for most home equity products, but 680-700+ unlocks the best pricing and higher CLTV limits. Scores below 660 often face higher rates, lower borrowing limits, or fewer lender choices. FHA and VA cash-out refinances can be more flexible on credit than conventional options.

Lenders set their own overlays on top of the basics. Meet the standard below first, then confirm whether your lender layers anything extra.

Documentation you'll typically need

Recent pay stubs and two years of W-2s or returns
Two months of bank statements
Your current mortgage statement and homeowners insurance
A recent appraisal or automated valuation

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Frequently Asked Questions

Credit Score for a Home Equity Loan or HELOC — the bottom line for 2026?: A 620 FICO is roughly the floor for most home equity products, but 680-700+ unlocks the best pricing and higher CLTV limits. Scores below 660 often face higher rates, lower borrowing limits, or fewer lender choices. FHA and VA cash-out refinances can be more flexible on credit than conventional options.
Does a HELOC have different rules than a cash-out?: Yes — HELOCs and home equity loans allow up to ~85% CLTV and often skip a full appraisal, while a cash-out refinance caps at 80% LTV and resets your first mortgage.