 TITLE: What Is a Cash-Out Refinance? CONTENT: How to Qualify for a Cash-Out Refinance\n---------------------------------------\nA cash-out refinance loan generally comes with the same eligibility criteria as a traditional mortgage refinance loan.\nThe main difference is that you typically need to have more than 20% equity in your home to obtain a loan—with traditional refinance loans, your loan-to-value ratio (LTV) may not be a deal-killer unless it's close to 100%.\nIn addition to your LTV, lenders will also consider other factors, including your credit score, debt-to-income ratio, how long you've been living in your home, your job history and more.\nThis means that if your credit score has decreased since you first bought the house, you have more debt or your job situation is a bit shaky, it could make it challenging to get approved for a cash-out refinance. On the other hand, if your situation has improved, you may end up getting a better interest rate on your cash-out refinance loan than you had on your original loan.\nEvery lender has its own set of credit criteria, so work directly with lenders through the preapproval process to determine your eligibility. And while it's possible to get a cash-out refinance with bad credit, there may be additional requirements to mitigate the risk the lender is taking on. END