Cash-Out Refinance in Florida: Limits, Rules and Real Costs

Short answer

On a Florida primary home, a conventional or FHA cash-out refinance can usually go up to 80% of the appraised value, and a VA cash-out up to 100%, as of October 2026. So on a $500,000 home, an 80% loan is $400,000, and your cash is that amount minus your current payoff and closing costs. Florida adds doc stamps of $0.35 per $100 and intangible tax of 2 mills on the new loan.

Maximum cash-out by loan type (as of October 2026)

• Conventional (Fannie Mae Eligibility Matrix, August 5, 2026, DU): primary home 1 unit 80% LTV; primary home 2 to 4 units 75%; second home 1 unit 75%; investment property 1 unit 75%, 2 to 4 units 70%. Loan must fit the conforming limit or it becomes a jumbo with its own rules.
• FHA: 80% of the adjusted value maximum LTV and CLTV, per HUD Mortgagee Letter 2019-11 (it was 85% before September 2019). FHA cash-out is for owner-occupied homes and must fit the FHA limit, $667,000 for one unit in Miami-Dade, Broward and Palm Beach in 2026. See FHA loans.
• VA: VA says eligible Veterans can refinance "up to 100 percent of the appraised value" of a home they own and occupy. Lenders may set a lower cap. See VA loans.
• DSCR (investors): a business-purpose loan for rental property, qualified on the property's rent instead of your personal income. Each lender sets its own cash-out LTV, usually below owner-occupied limits, plus reserve and credit rules. See DSCR loans.

Your credit score, debt-to-income and property type can lower these maximums. All loans are subject to credit approval.

How to calculate your cash

The math is simple: appraised value x maximum LTV, minus your payoff, minus closing costs = cash to you.

Example: a 1-unit primary home in Miami-Dade appraised at $500,000, with a $250,000 payoff.

• 80% conventional maximum: $400,000 new loan.
• Minus the $250,000 payoff: $150,000 before costs.
• Minus closing costs (including the Florida taxes below): your net cash.

If you also have a HELOC or second mortgage, it counts toward CLTV and is usually paid off from the new loan. Learn the terms in what is LTV and what is a cash-out refinance.

Seasoning: how long you must own the home

Conventional (Fannie Mae Selling Guide B2-1.3-03):

• At least one borrower must have been on title for at least six months before the new loan funds. Exceptions include inherited property, property awarded in a divorce, and time held by your own LLC or a revocable trust where you are the primary beneficiary.
• If you are paying off an existing first mortgage, it must be at least 12 months old, measured note date to note date. This does not apply to paying off a subordinate lien or buying out a co-owner under a legal agreement.
• If the home was listed for sale, it must be off the market on or before closing.
• Delayed financing: if you bought with cash in the last six months, you may be able to take your money back, limited to your documented purchase investment plus closing costs, if the purchase was arm's length and no mortgage was used.

VA: when refinancing a VA loan into a VA cash-out, at least 210 days must pass between the closing of the old loan and the new one. VA also requires a net tangible benefit and, on some refinances, fee recoupment within 36 months.

More in what is seasoning.

Florida closing costs on a cash-out refinance

Florida taxes the new loan, and these taxes are a real part of your cost:

• Documentary stamp tax: $0.35 per $100 on the note and mortgage (Florida Statutes s. 201.08). On a $400,000 loan, $1,400.
• Nonrecurring intangible tax: 2 mills, or $2 per $1,000, on obligations secured by Florida real estate (s. 199.133). On $400,000, $800.
• Title: a new lender's title policy, title search and settlement fees. See title insurance.
• Lender and third-party fees: appraisal, credit report, recording, and any discount points you choose to pay.
• Prepaids: interest to the first payment and possibly a new escrow deposit for taxes and insurance.

Your Loan Estimate lists every one of these. Read more on Florida doc stamps and intangible tax.

What lenders check on a Florida cash-out

Expect a full underwrite, not a shortcut. Lenders typically look at:

• Appraisal. The value sets your maximum loan, so the appraisal drives everything. Condo values in South Florida can be affected by pending special assessments, milestone inspections and SIRS reserve studies, and the building may need to meet the program's condo rules.
• Income and debts. Your debt-to-income ratio is calculated with the new, larger payment. Self-employed borrowers may use a bank statement loan when tax returns understate income.
• Insurance. Proof of homeowners (or HO-6) coverage, plus flood coverage if your flood zone requires it. Florida premiums affect your payment and your DTI.
• Title. Any open liens, judgments or unpaid HOA balances must be cleared or paid at closing.
• Use of funds. On owner-occupied loans you can usually use the cash for anything. On a DSCR loan, expect to state that the loan is for business purposes.

Have your current mortgage statement, insurance declarations, recent income documents and HOA contact ready to speed things up.

Is it worth it? Break-even and alternatives

A cash-out refinance replaces your whole first mortgage. If your current rate is well below today's market, you would pay the new rate on the old balance too. Compare total cost, not just the new payment.

• Paying off higher-cost debt: add up the monthly payments you eliminate, subtract the change in your mortgage payment, and divide your closing costs by that monthly savings. Example: $9,000 in costs and $450 a month saved is a 20-month break-even. Use our refinance break-even guide.
• Keeping a low first rate: a HELOC or fixed second mortgage leaves your first mortgage alone. See our HELOC in Florida guide.
• Investors: a DSCR cash-out on a rental can fund the next down payment without using personal income to qualify. It is a business-purpose loan.

Rates vary daily; call 305-425-1990 for today's pricing. QMS Lending is an independent broker in Miami, FL, with access to 100+ lenders, so we can price conventional, FHA, VA and DSCR cash-out side by side, in English or Spanish. See all refinance options.