What is the minimum home equity loan amount?

Most lenders set a minimum loan size, commonly between $10,000 and $35,000. If the room under your CLTV cap is smaller than the lender's minimum, you may not qualify even with some equity — a HELOC, which can draw smaller amounts, may fit better.

How do I calculate how much I can borrow?

Multiply your home's value by the CLTV cap (use 0.85), then subtract your mortgage balance. Example: a $400,000 home at 85% is $340,000; minus a $250,000 mortgage leaves about $90,000 you could borrow as a fixed home equity loan.

What credit score do I need for a home equity loan?

Most lenders look for a credit score around 680 or higher, a debt-to-income ratio under about 43%, and verifiable income. Stronger credit can unlock a higher CLTV and a lower fixed rate.

How much equity do I need for a home equity loan?

Q: How much equity do I need for a home equity loan?

Most lenders require you to keep at least 15–20% equity after the loan, meaning a combined loan-to-value (CLTV) cap of 80–85%. Because a home equity loan is a lump sum, the entire amount counts against that cap at once, so you typically need at least 15–20% equity beyond your current mortgage to borrow a meaningful amount.

Reviewed by the HomeEquityWise Editorial Team · Last updated June 2026 · How we calculate these numbers

Lenders generally want you to keep at least 15–20% equity after a home equity loan — an 80–85% combined loan-to-value (CLTV) cap. The twist versus a line of credit: a home equity loan is a lump sum, so the full amount counts against that cap immediately. On top of the cap, most lenders set a minimum loan size (~$10,000–$35,000), so you need enough room under the cap to clear that floor.

Minimum: ~15–20% equity to keep after the loan (an 80–85% CLTV cap).
Lump sum counts all at once — unlike a HELOC, you can't borrow "just a little."
Minimum loan size is usually $10k–$35k; too little room and you won't qualify.
Borrowable = (home value × 0.85) − mortgage balance.
Estimate your fixed loan + payment with the home equity loan calculator.

Why "lump sum" changes the equity math

A home equity loan and a HELOC use the same 80–85% CLTV cap, but they consume it differently. A HELOC only counts what you've actually drawn, so a small line is easy. A home equity loan hands you the entire balance up front at a fixed rate — the whole amount lands against your CLTV the day you close. That means you need enough equity to fit the full loan you want under the cap, not just a sliver.

Worked example

Your home is worth $400,000 and you owe $250,000. At an 85% cap, total loans can reach $340,000; subtract the $250,000 mortgage and you could borrow about $90,000 as a fixed home equity loan. That comfortably clears any lender minimum. But if you owed $320,000 on that same home, your room would be only ~$20,000 — near or below some lenders' minimums, and a thin cushion they may not approve.

The minimum-loan floor catches people off guard

Equity alone isn't the only gate. Because lenders have fixed underwriting costs, most won't write a home equity loan below a minimum — commonly $10,000 to $35,000 depending on the lender. So two things have to be true:

You keep 15–20% equity after borrowing (clear the CLTV cap), and
The room under the cap is at least the lender's minimum loan size.

If you have equity but only a small amount of room, a HELOC — which can draw smaller sums — is often the better fit than a lump-sum loan.

Equity, then credit and income

Requirement	Typical bar (2026)
Equity kept after loan	15–20% (80–85% CLTV)
Credit score	~680+ (some 620 at higher rates)
Debt-to-income	Under ~43%
Minimum loan size	~$10,000–$35,000
Income	Verifiable; clean payment history

Frequently asked questions

How much equity do I need for a home equity loan?

Usually enough to keep 15–20% after borrowing (an 80–85% CLTV cap). Because it's a lump sum, the full loan counts against the cap at once, so you need real room under it.

What's the minimum loan amount?

Commonly $10,000–$35,000. If your room under the CLTV cap is smaller than the minimum, you may not qualify — a HELOC can draw smaller amounts.

How do I calculate what I can borrow?

Home value × 0.85, minus your mortgage balance. A $400k home at 85% is $340k; minus a $250k mortgage ≈ $90k available as a fixed loan.

What credit score do I need?

Usually ~680+, DTI under ~43%, and verifiable income. Stronger credit earns a higher CLTV and a lower fixed rate.

Educational only — not financial advice. CLTV caps, minimum loan sizes, and credit requirements vary by lender; compare at least three offers. See our methodology.