How Much Equity Do I Need?
How Much Equity Do I Need?
Equity Targets by Goal
How Lenders Measure Equity
Quick Equity Benchmarks
How to Build or Unlock Equity
Keep Exploring
Related Blog Posts
Frequently Asked Questions
Not Sure How Much Equity You Need?
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
Related guides to help you compare options and move toward pre-approval.
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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.
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