Equity targets for conventional refinance, PMI removal, and cash-out. From Ryan Minick and Steve DeLon at Luminate Bank in Kokomo, lending nationwide.
Home
Conventional Loans
Equity Requirements
It depends on what you are doing. Purchases can start with as little as 3–5% down. Avoiding PMI usually means 20% equity. Cash-out refinances and investment properties typically require more. Here is how lenders think about loan-to-value.
Equity is simply home value minus what you owe — lenders express it as LTV.
Appraised value and payoff timing determine the equity lenders will recognize.
These are common planning numbers — your scenario may differ with credit and occupancy.
Equity grows through payments, appreciation, and improvements — then financing unlocks it.
Step
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Share your goal — buy, drop PMI, or cash out — and Ryan or Steve will translate it into a clear LTV target.