FAQs

Cash-out Refinance

  1. What can I use my cash-out proceeds for?
  2. How much equity can I take out?
  3. 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:
General Mortgage
Purchase Transaction
Rate & Term Refinance