How Much Can You Borrow With a HELOC?

How Does a HELOC Work?

A HELOC is a second mortgage, in the form of a credit line, that allows you to borrow against your home's equity up to your credit limit. Like a credit card, you can draw from your credit line as often as you like and only pay interest on the amount you borrow. This differs from a home equity loan, in which you receive a single, lump-sum payment upfront.

HELOCs can be a more affordable option than many other borrowing methods, such as personal loans or credit cards. Because the HELOC's credit line is secured by your home, lenders typically offer lower interest rates than they would for an unsecured debt.

Of course, using your home as collateral is a significant risk you must consider before applying for a HELOC. If you fall behind on payments, your lender could foreclose on your home. HELOCs usually have a variable interest rate, so your payment could fluctuate depending on how market rates move. Fixed-rate HELOCs do exist, but they're less common.

Learn more: What You Need to Know About HELOCs in 2025

How Much Can I Borrow With a HELOC?

You can typically borrow up to 85% of your home's value, minus what you still owe on your primary mortgage and any secondary home loans (including the HELOC amount you're hoping to get). This figure represents your combined loan-to-value ratio (CLTV).

You can use this simple formula based on your CLTV to estimate how much you can borrow with a HELOC:

Say your home is valued at $500,000 and you still owe $250,000 on your mortgage. If you plug the numbers into the formula, it looks like this:

• $500,000 x 0.85 = $425,000 This is your maximum total loan amount.
• $425,000 - $250,000 = $175,000 This is your estimated HELOC borrowing limit.

Tip: With a variable-rate HELOC, your monthly payments could go up in the future. You can help keep your payments more manageable by borrowing only what you need. For example, even if you're approved for a $100,000 credit line, you might only withdraw $30,000 (or the exact amount you expect to need).

Factors That Determine HELOC Borrowing Limits

Your home equity isn't the only factor determining the amount you can borrow with a HELOC. Your borrowing limit also depends on the lender. While most lenders cap your limit at 85% of your CLTV, some go as high as 90% or even 100%. But your borrowing limit also depends on other financial factors, such as:

• Appraised home value: Your home's appraised value determines how much equity you have, and lenders may require a new appraisal to pinpoint its current market value. A higher value could give you more equity and, in turn, increase your borrowing limit.
• Credit score: A higher credit score may help you qualify for a larger credit line and a lower interest rate. Most lenders require a minimum FICO^® Score^Θ of at least 680, while others look for scores over 720.
• Debt-to-income ratio (DTI): Your DTI shows how much of your gross monthly income goes toward monthly debt payments. Lenders generally prefer a DTI ratio below 43%, and the lower your ratio, the better.
• Mortgage payment history: If your credit report shows a strong history of on-time payments, lenders may view you as less risky and feel more comfortable offering a higher credit limit. On the other hand, missed payments can reduce your borrowing limit or, worse, prevent you from qualifying at all.
• Consistent income: Because HELOCs are second mortgages, lenders take on more risk and must make sure you have stable and sufficient income to cover the payments now and in the future. There is no set minimum income requirement, but a higher income may help you qualify for a larger credit line.

Learn more: Requirements for a Home Equity Loan or HELOC

Alternatives to HELOCs

If a HELOC doesn't make sense for your situation, there are other ways to borrow using your home equity or without putting your home at risk. Here are a few common alternatives:

• Home equity loan: Like with a HELOC, many lenders cap your home equity loan borrowing limit at 85% of your home's value minus your mortgage balance. It also uses your home as collateral. But instead of having a revolving credit line, this loan gives you a lump sum upfront you must repay with fixed monthly payments over a set term, typically five to 30 years.
• Cash-out refinance: A cash-out refinance replaces your existing mortgage with a new, larger one, and you pocket the difference in cash. Ideally, you want to refinance at a lower interest rate than your current mortgage to save on interest. Even a 1% drop in your rate could save you tens of thousands over the life of the loan.
• Personal loan: If you're not keen on using your home as collateral, you might consider getting an unsecured personal loan. You may qualify for funds up to $100,000, but be aware they usually come with higher interest rates and shorter repayment terms.
• Intro 0% APR credit card: If your borrowing needs are smaller or you're just looking to consolidate your debt, an intro 0% APR credit card could give you the necessary funds without risking your home. These credit cards offer an introductory 0% APR for up to 21 months, which may give you enough time to repay the balance interest-free. If not, interest rates typically rise significantly to the card issuer's standard rate once the introductory period expires.

Learn more: Alternatives to HELOCs

The Bottom Line

The maximum you can borrow with a HELOC depends on your available home equity and your financial profile. You might qualify to borrow up to 85% of your available home equity. But keep in mind, your credit, income and other factors will likely affect the final credit line limit.

Whether you apply for a HELOC or another lending option, being in one of the good, very good or exceptional credit score ranges can help you qualify for a higher credit limit and more favorable terms. Before you apply, check your credit report and credit scores for free with Experian. You'll get a clearer picture of where your credit stands so you can address any issues ahead of time.