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The credit score needed to refinance depends on your loan type. It also depends on how much equity you've built.
Generally, higher credit scores open up more opportunities to save money on a refi, but there's no one-size-fits-all credit score to meet.
In fact, it's possible to refinance some government-insured loans without getting a credit check at all.
...in as little as 3 minutes — no credit impact
Minimum credit score by refinance type
The table below shows credit score minimums by loan type. Keep in mind, meeting this minimum doesn't guarantee loan approval. Mortgage eligibility is a complex puzzle; credit score is just one piece.
| Refinance type | Minimum credit score |
|---|---|
| Conventional rate-and-term refinance | 620 |
| Conventional cash-out refinance | 620 |
| FHA rate-and-term refinance | 580 |
| FHA cash-out refinance | 580 |
| FHA Streamline refinance | Often N/A |
| VA rate-and-term refinance | 620 |
| VA cash-out refinance | 580 |
| VA Streamline Refinance | Often N/A |
As you can see, FHA and VA refinances have lower floors than conventional, which is by design. Government-backed loans exist to serve borrowers with more varied credit profiles.
You may be wondering why FHA and VA Streamline refinances show not-applicable. That's because these types of refinances can often skip the credit check, if the loan is keeping the same borrowers on file and not removing a co-borrower. More on this below.
For conventional refinances, it's worth noting that since November 2025, Fannie Mae and Freddie Mac shifted to a holistic credit risk assessment rather than a rigid score floor.
A FICO 620 remains the minimum for most lenders, but 620 won't guarantee the lender will approve the refinance. Factors like debt-to-income ratio, the amount of equity in the home, and the borrower's payment history could raise the credit score floor for some borrowers.
Your score qualifies you and it also sets your rate
Getting OK'd for a loan and getting a competitive rate are two different things. Most borrowers focus on the minimum credit score ("Do I qualify?") when a better question is often "what will I pay?"
Conventional refinances use loan-level price adjustments, or LLPAs, to price credit risk into your rate. An LLPA is essentially a fee, expressed as a percentage of the loan amount, that increases as your credit score decreases.
Lenders typically roll these adjustments into your interest rate rather than charging them as a separate upfront fee. The result is that a borrower with a 620 score will generally receive a higher rate than a borrower with a 740 score on the exact same loan.
This matters for your break-even calculation. If you're refinancing to lower your rate, but your current score means you can only qualify for a rate that isn't meaningfully lower than what you have, the refinance may not be worth the closing costs.
Spending three to six months improving your score before applying can put you in a better position to save on a refinance.
Other factors lenders look at alongside your credit score
Credit score is a big piece of your refinancing puzzle, but it's just one piece of a fuller picture. Lenders evaluating a refinance application also look closely at:
Debt-to-income ratio (DTI)
Your DTI is your total monthly debt payments divided by your gross monthly income. For conventional refinances, the typical maximum DTI is 45%, though some lenders may go up to 50% with strong compensating factors.
FHA refinances could allow DTIs above 50% with strong qualifying compensating factors. VA refinances use a residual income approach rather than a strict DTI cap, though lenders still look at the ratio.
Equity and loan-to-value ratio (LTV)
Equity is the paid-off part of your home value. If your home is worth $400,000 and you owe $200,000 on your current mortgage, you have 50% equity.
The more equity you have, the less risk the lender is taking, and the better your terms are likely to be. For conventional refinances, having 20% or more equity means you avoid PMI. For cash-out refinances across most loan types, lenders typically cap the new loan at 80% LTV on primary residences, meaning you must retain 20% equity after the cash-out.
Payment history on your current mortgage
A lender refinancing you is looking at how you've handled the loan you already have. Late payments in the last 12 months — especially on your mortgage — can become an obstacle regardless of your FICO score.
Income and employment
Full documentation refinances require income verification. Consistent employment history and documented income give lenders confidence in your ability to repay the new loan.
Learn more about what income documentation is needed to refinance.
What to do if your score isn't there yet
If your score falls below the minimum for the refinance you want, taking these steps can help.
Your lender may also have a credit counseling service that can offer advice that's more specific to your life:
Pay down revolving balances
Credit utilization, which is lender speak for the percentage of your available revolving credit you're currently using, is one of the biggest factors in your score.
Reducing balances on credit cards can improve your score within one to two billing cycles. Getting your utilization below 30% is a commonly cited target; below 10% typically produces the best results.
Dispute errors on your credit report
Pull your reports from all three bureaus and look for inaccurate late payments, accounts that aren't yours, or balances reported incorrectly. Errors are more common than most people expect, and disputing them successfully can produce a meaningful score improvement without changing any of your financial behavior.
Avoid new credit applications
Each hard inquiry from a new credit application can reduce your score by a few points and stay on your report for two years. In the months before a refinance application, avoid opening new credit cards, auto loans, or other lines of credit.
Don't close old accounts
Length of credit history and total available credit both factor into your score. Closing old accounts, even ones you no longer use, can reduce your available credit and shorten your average account age, both of which can hurt your score.
Credit improvement often takes three to six months of consistent behavior. If your score is close to the next tier, that window may be worth the wait. If you already have an FHA or VA loan, a Streamline refinance may be available to you.
Which credit score do lenders actually use?
When you apply for a refinance, your lender pulls your credit from all three major bureaus: Equifax, Experian, and TransUnion. This is called a tri-merge credit pull. The lender uses your middle score out of the three.
If you're applying with a co-borrower, the lender uses the lower middle score between the two of you. So if your middle score is 720 and your co-borrower's middle score is 630, the qualifying score for the application is 630.
You can learn more about which credit score lenders use for mortgage applications and how the tri-merge pull works.
It's also worth noting that checking your own credit — through a credit monitoring service or annualcreditreport.com — uses a soft inquiry and does not affect your score.
...in as little as 3 minutes — no credit impact
Streamline refinances; When a credit check may not apply
If you have an FHA or VA loan, you may have access to a streamline refinance. The credit requirements for these loans are different from a full refinance.
FHA Streamline Refinance
An FHA Streamline refinance is available to existing FHA loan holders who want to lower their rate or payment. The program requires minimal documentation and, for non-credit-qualifying applications, does not require a new credit check.
You will need to demonstrate a net tangible benefit, meaning the new loan must produce a lower payment or shorter term than your current loan. But your current credit score may not be the gating factor it would be on a conventional or standard FHA refinance.
VA Streamline Refinance (IRRRL)
A VA Streamline Refinance works similarly. It's available to existing VA loan holders, and it requires minimal documentation and is often non-credit-qualifying.
The formal name for this product is the Interest Rate Reduction Refinance Loan (IRRRL), though it's best referred to in plain language as the VA Streamline Refinance. Like the FHA Streamline, it must produce a clear financial benefit and cannot produce cash out.
Both programs offer a faster, simpler path to a lower rate for borrowers who already have government-backed loans. If your score has dipped since you originally borrowed, these options are worth exploring before concluding that refinancing isn't available.
Frequently asked questions
Can I refinance with a 580 credit score?
Yes, in some cases. FHA rate-and-term and cash-out refinances accept 580 as the minimum. If you already have an FHA or VA loan, a Streamline refinance may be available to you with less credit scrutiny. Conventional refinances require a minimum 620.
Does my credit score have to be perfect to get a good refinance rate?
No, but a higher score does unlock better pricing. Conventional lenders use loan-level price adjustments to factor credit risk into your rate. A 740+ score typically allows better terms than a 620 credit score.
What's the minimum credit score for a cash-out refinance?
For a conventional cash-out refinance, the minimum is 620, but some lenders may push this floor to 640. For an FHA cash-out refinance, it's 580. For a VA cash-out refinance, lenders typically require 580 or higher. Note that cash-out refinances also require you to retain at least 20% equity in your home after the cash-out, regardless of loan type.
Can I refinance my FHA loan with bad credit?
Possibly. If you currently have an FHA loan, an FHA Streamline refinance may be available to you without a traditional credit check, as long as you have a history of on-time payments and the new loan produces a clear financial benefit.
Which credit score do mortgage lenders actually use when you refinance?
Lenders pull all three major bureaus and use your middle score. If you're applying with a co-borrower, the lender uses the lower middle score between the two applicants. Since all three bureaus may report slightly different scores, it's worth checking all three before you apply.
How much does my credit score affect my refinance interest rate?
Significantly, especially for conventional borrowers. Lenders use loan-level price adjustments (LLPAs) to price credit risk into your rate. The difference between applying with a 620 score and a 760 score will likely be significant.
Credit score is the starting point but not the final answer
Your credit score is the starting point for any refinance. It determines what products you can access and at what rate.
But qualifying for a loan and getting a loan that makes refinancing worthwhile are two different things.
A mortgage preapproval removes some of the mystery, showing how your unique finances, including your credit score, affect your loan options.
...in as little as 3 minutes — no credit impact
This article is intended for informational purposes only and does not constitute financial or legal advice. Mortgage products, rates, and terms vary by lender, loan type, and borrower profile. Consult a qualified mortgage professional before making decisions about your home loan.