- What can I use my cash-out proceeds for?
- How much equity can I take out?
- Do I need a new appraisal?
1. What can I use my cash-out proceeds for?
Provident Funding allows you to use the proceeds from a cash-out loan for any legal
purpose. However, the creation of any new liability through the use of the cash-out
proceeds must be qualified in the loan process. For example, if you want to do a
cash-out refinance on your current residence and use the proceeds toward a down
payment on a second home or investment property, you must qualify for the cash-out
refinance with the new property mortgage liability included.
Note: Provident Funding requires a cash-out purpose letter for any cash-out
amount greater than $20,000.
2. How much equity can I take out?
The maximum cash-out allowable on a conforming loan is $424,100 less any amount
owed on the subject property. The maximum cash-out allowed on all Super Conforming
products is $250,000. The maximum cash-out allowed on all Jumbo products is $150,000.
To find out more about cash-out refinances please contact one of Provident Funding’s
knowledgeable Mortgage Consultants at 1-888-547-4050.
3. Do I need a new appraisal?
Yes. Provident Funding requires a new appraisal on a cash-out refinance. Provident
Funding will choose one of our appraisal companies to complete the appraisal.
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Other Frequently Asked Questions:
Rate & Term Refinance