The ceilings, and where the equity came from
A cash-out refinance pays off what you owe and hands you the difference, up to a limit set by the appraised value.
| Program | Maximum loan-to-value | Seasoning |
|---|---|---|
| FHA | 80% | 12 months |
| Conventional, one unit | 80% | 12 months |
| VA | 100% under VA rules; lenders commonly cap at 90% | Per lender |
The VA charges a funding fee on a cash-out: 2.15% on a first use and 3.3% after that, waived for borrowers receiving VA disability compensation or Dependency and Indemnity Compensation, and for Purple Heart recipients.
Everything on this page is an estimate until a lender underwrites the file, and all of it is subject to lender approval.
Delaware County’s median home value was $369,806 on July 31, 2026, up 2.7% over the year. Underneath that, July 2026 sold medians ran $341,450 in Drexel Hill, $309,500 in Ridley Park, $389,900 in Aston and $525,000 in Springfield.
The county also reassessed every parcel effective tax year 2021, replacing a 1998 base year with values as of July 1, 2019. That reset what your assessment says, and it has nothing to do with what an appraiser will say your house is worth today. The two numbers get confused constantly. Only one of them sets your cash-out ceiling.
What the money usually goes back into
The house. Much of the county’s eastern half was built before 1940, so the list is predictable.
The sewer lateral. More than a dozen Delaware County municipalities want a lateral inspection or certification at resale, and several want a camera scope or a dye or smoke test by a certified plumber. Nether Providence has required a camera plus a smoke or dye test since January 2016. Upper Darby wants certification by a township-licensed contractor, valid 90 days, and treats a missing certificate as a substantial violation.
The roof. FHA appraisals fail a roof covering with under two years of remaining physical life, which sends the appraisal out for a professional roofer’s inspection. On a flat roof over a row, where the appraiser often cannot see the surface at all, they report on the underside, the attic and the ceilings instead.
The wiring. Old panels, fuse boxes, frayed or exposed wire in the basement. HUD’s handbook names none of this specifically, but it calls a deficiency when the system cannot support the normal functions of the house without disruption, and asks the appraiser to report when the amperage and panel size appear inadequate. Insurers set their own rules on top of that.
The paint. On a house built on or before December 31, 1978, defective paint has to be repaired for an FHA appraisal. Defective means cracking, scaling, chipping, peeling or loose, inside and out, and that takes in porches, railings, windows, doors, fences, sheds and the detached garage.
If you have not bought the house yet
If the house is not yours yet, the same work can ride on the purchase. An FHA 203(k) finances up to $75,000 of rehabilitation on the Limited version, with nine months to finish, and its work write-up templates specifically list lead-safe paint treatment, handrail installation and sewer line replacement as required items. That is one loan, one closing, and no equity required.
Cash-out is the tool once you own the place and the equity is already there.
No transfer tax. None. That is the whole reason a Delco cash-out looks cheap next to a Delco purchase, where the tax runs 2% in most towns, 2.5% in Radnor, Upper Darby and the City of Chester, and 3% in Upper Providence Township.
You do pay recording fees, an appraisal, lender fees, and title. Title runs on the statewide TIRBOP schedule, with a refinance base rate of $512. If there’s a prior owner’s policy on the property, the reissue rate takes 50% off when that policy is five years old or newer, and 70% off when it’s older.
The county rule that catches people, and the tax bill after
Homeownership First, the county’s up-to-$10,000 down payment assistance, is a 0% loan. It becomes repayable when you sell or transfer the property, and it also becomes repayable on a refinance for debt consolidation. Subordination is available for a rate-and-term refinance.
Read that twice if you took the county’s money. A cash-out to consolidate credit cards is a different animal from a rate-and-term refinance, and the county treats it that way. In the 27 Revitalization communities the loan is forgiven after five years of owner-occupancy, so where you are in that five years matters too. Call the county’s housing office and get the answer in writing before you apply.
Cashing out raises the loan, which raises the escrow, which arrives on top of a tax bill that already moved. County millage for 2026 is 4.609 mills, up from 3.873, which the county put at about $185 a year for the average homeowner, with municipal and school millage stacked on top of that.
The one lever available to you is the homestead exclusion, which lowers the assessed value used for school tax. You file it with your school district during open enrollment, December 15 through March 1, and it costs nothing.