HELOC CLTV Limits by Bank: 80%, 85%, and 90% Compared

Home Equity Lines of Credit (HELOCs) are powerful tools for accessing the equity in your home, but not all lenders offer the same loan-to-value (LTV) or combined loan-to-value (CLTV) limits. Knowing the difference between 80%, 85%, and 90% CLTV limits can greatly impact how much you can borrow and under what terms. This guide breaks down how different banks structure their HELOC offers and what you need to know to make an informed decision.

What is a CLTV Limit?

CLTV stands for Combined Loan-to-Value ratio. It’s a measure of how much you owe on your home (including first mortgages and any existing HELOCs) relative to its appraised value. Lenders use this ratio to assess risk. A lower CLTV generally means a safer loan for the bank, while a higher CLTV allows borrowers to access more of their home equity.

Formula:

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CLTV = (First Mortgage Balance + HELOC) / Appraised Home Value

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Comparing HELOC CLTV Limits: 80%, 85%, and 90%

1. 80% CLTV HELOCs

Best for: Conservative borrowers, high-credit score applicants

• Pros:
  
  • Easier approval
    
  • Lower interest rates
    
  • May waive appraisal requirements
    
• Cons:
  
  • Less borrowing power
    
  • Less ideal for those seeking maximum equity access
    

Example Banks: Wells Fargo, U.S. Bank

2. 85% CLTV HELOCs

Best for: Balanced borrowers looking for a bit more flexibility

• Pros:
  
  • More equity access
    
  • Still competitive rates
    
• Cons:
  
  • Higher credit score and income verification often required
    

Example Banks: Bank of America, TD Bank

3. 90% CLTV HELOCs

Best for: High-equity homeowners or those needing larger loans for renovation or debt consolidation

• Pros:
  
  • Maximum borrowing power
    
  • Ideal for major home projects or debt consolidation
    
• Cons:
  
  • Highest risk for lenders
    
  • Higher interest rates and stricter requirements
    

Example Banks: Third Federal, PenFed Credit Union, select credit unions

Choosing the Right CLTV Limit

When deciding between an 80%, 85%, or 90% CLTV limit, consider:

• Your Credit Score – Higher CLTVs usually require higher scores.
  
• Income Stability – Lenders want proof you can repay.
  
• Purpose of Funds – Renovations? Debt payoff? Emergency fund?
  
• Home Value Trends – Declining values can impact CLTV eligibility.
  

Common CLTV-Related Terms to Know

• LTV (Loan-to-Value): Doesn’t include second loans like HELOCs.
  
• CLTV (Combined Loan-to-Value): Includes all loans secured by the property.
  
• DTI (Debt-to-Income Ratio): Important for qualification.
  
• Draw Period: Timeframe when you can borrow against your HELOC.
  

FAQs: HELOC CLTV Limits

Read Next:

• HELOC for Investors: A Powerful Tool for Real Estate Growth
• Interest-Only HELOC Considerations
  

Final Thoughts

Choosing between an 80%, 85%, or 90% CLTV HELOC boils down to your financial goals, creditworthiness, and comfort with borrowing limits. By understanding how different banks structure their HELOC products, you can better align your equity access strategy with your financial needs.

Want help comparing your HELOC options? Talk to a home equity advisor today.

Unlock Your Home Equity with Figure

• Approval in 5 minutes. Funding in as few as 5 days
• Borrow $20K-$400K
• Consolidate debt or finance home projects
• Fastest way to turn home equity into cash
• 100% online application

Check Rates