Florida cash-out refinance guide.
Florida home values have risen significantly. Many homeowners are sitting on $100,000–$300,000 in equity they can access through a cash-out refinance. Without selling.
Turn your equity into liquid cash.
A cash-out refinance replaces your existing mortgage with a larger loan and puts the difference in your pocket. You keep the home. You get cash. The new loan is secured by your property. Typically at a lower rate than credit cards, HELOCs, or personal loans.
Cash-Out Refinance Example
Note: If you have a low existing rate, compare cash-out refi vs HELOC carefully. A HELOC lets you draw on equity without touching your primary mortgage rate.
Conventional Cash-Out: Up to 80% LTV
Most lenders allow cash-out refinances up to 80% of your home's appraised value. 620+ credit score required. Rental properties are typically capped at 75% LTV.
FHA Cash-Out: Up to 80% LTV
FHA cash-out requires 620+ credit score (some lenders 580+), 12 months of on-time mortgage payments, and owner-occupancy. Comes with MIP, which adds to cost.
VA Cash-Out: Up to 100% LTV
VA-eligible borrowers can cash out up to 100% of their home's value. No other loan type allows this. No PMI. A powerful option for veterans with significant equity.
DSCR Cash-Out for Investment Properties
Investors can access equity in rental properties using DSCR loans with no income documentation. Qualify on rental income. Typically 70–75% LTV max on investment properties.
Common Uses of Cash-Out Proceeds
Home renovations (often increases home value), debt consolidation (eliminate high-rate cards), down payment on investment property, college tuition, business capital, emergency reserves. No restrictions on use.
The Rate Trade-Off
Cash-out refinancing at a higher rate than your current mortgage raises your monthly payment. Run the break-even math: how long until the lower-rate debt savings offset the higher payment? Our team does this analysis for free.
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Frequently asked questions about cash-out refinancing in Florida.
Should I do a cash-out refinance or a HELOC?
The answer depends on your current mortgage rate. If your existing rate is below 5%, a cash-out refi replaces it with today's higher rate on the full balance. A HELOC leaves your primary mortgage untouched and adds a second lien at a variable rate. HELOCs are better when you want to protect a low first-mortgage rate. Cash-out refi is better when you need a large lump sum and want a single fixed payment. Our team runs the numbers for both options before you decide.
Is the cash from a cash-out refinance taxable?
Generally, no. Cash received from a refinance is loan proceeds, not income, so it is not taxable. However, if you use the cash for home improvements, the interest may be tax-deductible. If you use it for debt consolidation or other purposes, the interest is typically not deductible. We recommend consulting a tax professional to confirm how the proceeds will be treated in your specific situation.
How much will a cash-out refinance cost in Florida?
Closing costs on a cash-out refinance typically run 2–5% of the new loan amount. On a $440,000 loan, expect $8,800–$22,000 in closing costs. These include origination fees, appraisal, title insurance, and recording fees. Some lenders offer no-closing-cost options that roll the fees into the rate. We compare total cost scenarios so you can choose the structure that makes the most financial sense.
How long does a cash-out refinance take to close in Florida?
Most cash-out refinances close in 30–45 days. The timeline is driven largely by the appraisal, which takes 7–14 days to order and receive. After appraisal, underwriting typically takes 5–10 business days. Florida's required 3-day right-of-rescission period means funds are typically available 3 business days after closing. Investment property refinances do not have a rescission period.
Can I do a cash-out refinance on a rental property in Florida?
Yes. Investment property cash-out refinances are available. Conventional lenders cap investment property cash-out at 75% LTV. DSCR lenders offer cash-out on rental properties with no income documentation — you qualify on the property's rental income. This is a common strategy for investors expanding their portfolio. Funds pulled from one rental can fund the down payment on the next acquisition.
Find out how much equity you can access.
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