Cash Out Refinance in Florida: How It Works and What You Can Borrow

A cash out refinance in Florida replaces your existing mortgage with a larger loan and gives you the difference in cash. It’s one of the most common ways homeowners access equity without selling. In South Florida, where home values have risen significantly since 2020, many homeowners have substantial equity available.

How a cash out refinance works

You refinance into a new loan at a higher balance. The difference between your new loan amount and your existing payoff arrives as cash at closing. Example: home worth $600,000, you owe $250,000, you take a new loan of $420,000. You receive $170,000 in cash before closing costs.

LTV limits for cash out refi in Florida

Conventional loans allow up to 80% LTV for cash out. FHA allows up to 80% LTV. VA loans allow up to 90% LTV for eligible veterans. On a $600,000 home, 80% LTV means a maximum new loan of $480,000. If you owe $200,000, you could access up to $280,000 before closing costs of 2–3%.

Cash out refi vs. HELOC

A cash out refi gives you a fixed lump sum at a fixed rate. A HELOC gives you a revolving line at a variable rate. If you know the exact amount you need and prefer payment certainty, cash out is usually the better long-term choice. For flexible, recurring access to equity, a HELOC costs less to set up. Read our HELOC in Florida guide for a direct comparison.

What you need to qualify

Credit score minimum 620 for conventional cash out. DTI must stay under 45–50% with the new higher payment included. A new appraisal is required. Closing costs typically run 2–3% of the new loan amount. Budget $6,000–12,000 in costs on a $400,000 refinance loan.

For personalized guidance on buying or selling in South Florida, contact the team at Pure Equity Realty. We serve Palm Beach, Broward, Miami-Dade, St. Lucie, and Highlands counties with expert representation and a 1% listing fee.