Mortgage programs›Jumbo loans›Jumbo loan cash-out refinance

Jumbo Cash-Out Refinance — California

Can you do a cash-out refinance on a jumbo loan?

Yes — jumbo cash-out refinances are available for California homeowners with significant equity. Here’s how it works.

Get a free rate quote

LTV limits and loan amounts

Occupancy Max LTV Max loan amount Min credit score
Primary residence 70–80% depending on program Typically up to $2M; up to $3M on select programs 700–720+
Second home 60–75% depending on program Up to $2M on most programs 720+
Investment property 60–70% depending on program Up to $2M on most programs 740

How much cash can you take out?

Cash-out amounts vary by program. Some cap at $500,000 regardless of loan amount. Others allow unlimited cash-out at lower LTVs (60% or below).

Reserve requirements on cash-out refinances

Cash-out refinances require more post-closing reserves than purchases — typically 6 months for primary residence and up to 24 months for investment properties.

What can you use cash-out funds for?

  • Home improvements and renovations
  • Investment property purchases
  • Debt consolidation
  • Business investment
  • Education expenses

Important restrictions

  • Properties currently listed for sale are not eligible
  • Higher credit scores required for cash-out vs. purchase
  • Fixed rate only on some programs for cash-out scenarios

California homeowners who purchased years ago have often built significant equity. A jumbo cash-out refinance can put that equity to work.

Serving California homebuyers and investors — Orange County, Los Angeles, San Diego, the Inland Empire, and communities throughout Southern California including Irvine, Huntington Beach, Anaheim, Fullerton, Garden Grove, and Santa Ana.

A worked example: how much cash could you take out?

This is an illustrative example, not a quote. Assume a primary residence appraised at $2,000,000 with a current mortgage balance of $900,000.

  • At 70% LTV, the maximum new loan is $1,400,000 ($2,000,000 × 0.70). Subtract the $900,000 payoff and you have $500,000 before closing costs.
  • At 80% LTV, the maximum would be $1,600,000, or $700,000 before costs, but only if the program, your credit score and the loan amount all allow the higher ratio.

Two limits can reduce that figure: the LTV for your occupancy type, and any program cap on the cash-out amount. Both vary by program.

Step by step

  1. We review your balance, estimated value, occupancy and credit profile and match them to program limits.
  2. You provide full income and asset documentation, as with any jumbo file.
  3. An appraisal sets the value. Appraisal waivers are not available on jumbo loans.
  4. The new loan pays off your existing mortgage first, then any remaining proceeds come to you.
  5. Reserves are verified after closing costs. If your monthly payment would be $10,000 and the requirement is 6 months, that is $60,000 left in liquid assets.

Cash-out versus keeping your current loan

A cash-out refinance replaces your entire first mortgage, not just the extra amount. That makes it worth comparing against leaving your current loan in place and borrowing separately. The right answer depends on your existing rate and term, how much cash you need, and how long you plan to keep the home. For questions about how the proceeds are treated at tax time, consult a tax professional.

Frequently asked questions

Can I use the proceeds to buy another property?

Many borrowers do. Lenders then count the new property in your financed-property total and may add reserve months for it, so plan for that when you size the cash-out.

Will a recent listing hurt my application?

It can. The property cannot be actively listed, and some programs cap LTV after a recent listing. Our guide on refinancing a recently listed home covers the paperwork.

Is there a waiting period before I can cash out?

Seasoning rules differ by program, and terms vary by program and borrower profile; we confirm the current guidelines when we review your scenario.

Related guides