What credit score is needed to refinance your mortgage?
Key takeaways
- A credit score of at least 620 will qualify you for a conventional refinance — but clearing the minimum doesn’t guarantee a good rate. Lenders save their best pricing for borrowers well above the cutoff, and the difference can add up to real money over the life of the loan.
- Minimums vary by loan type: 580 for FHA, generally 700+ for jumbo, and no set agency floor for VA or USDA (though lenders typically look for 620 and 640 respectively). A score that rules out one option may still work for another.
- If your score is borderline, run the math on closing costs vs. savings before you refinance — sometimes it’s cheaper to spend a few months improving your score first.
- If your score is well below your loan type’s minimum, refinancing may not be your best move right now. A repayment plan or loan modification through your current servicer can offer payment relief without locking you into a new rate for years.
Meeting the minimum credit score for your loan type is only step one. Lenders price loans on a sliding scale, so qualifying and getting the best available rate are two different things — and the gap between a borderline score and a strong one can cost you real money over the life of the loan. Some low-score borrowers can benefit from government-backed streamline refinances, which forgo the credit check altogether.
Keep in mind that if your new rate isn’t a real improvement over your current one, refinancing may actually cost you more than it saves once you factor in closing costs. Taking the time to improve your credit score can unlock access to a lower rate when you apply.
Read on for the minimum score you’ll need by loan type and how to decide whether refinancing with bad credit — or not refinancing at all — is the right call.
What credit score is needed to refinance a house?
| Loan type | Minimum score |
|---|---|
| Conventional refinance | 620 |
| Jumbo refinance | Generally 700 or higher |
| FHA refinance | 580 |
| VA refinance | No credit minimum from VA, but lenders generally require 620 |
| USDA refinance | No credit minimum from USDA, but lenders generally require 640 |
| Cash-out refinance | 620 |
These numbers are guidelines. The credit score you need to refinance depends on your lender, your individual situation and the type of refinance you choose. For example, lenders tend to have more stringent requirements for a cash-out refi than a traditional rate-and-term refinance.
You might also find that your lender wants a higher score if other parts of your financial picture aren’t as strong, for instance, if you have a high debt-to-income (DTI) ratio.
Credit score for conventional refinance
If your score clears the minimum but you’re under 740
You’ll likely qualify, but you’re not positioned for the best available pricing. This is the band where shopping multiple lenders matters most — the spread between offers tends to be widest here.
If your score is between 740 and 779
You’re closer to top-tier pricing, but not there quite yet. Fannie Mae and Freddie Mac’s current loan-level pricing framework actually splits this range into two bands, with 740–759 typically carrying higher fees than 760–779.
If your score is 780 or higher
You could qualify for top-tier conventional pricing with a credit score of 780 or higher. Fannie Mae and Freddie Mac moved the top pricing tier from 740 to 780 in a 2023 pricing overhaul, so even a jump from the high 700s to 780 can shave a meaningful amount off your rate.
If you’re below your loan type’s minimum
Refinancing with a credit score below your loan type’s minimum is possible in some cases, but it’s often not a good idea. A lower score typically results in a higher rate — and if that rate isn’t a real improvement over what you’re already paying, you could end up with a larger monthly payment or more total interest over the life of the loan, which defeats the purpose of refinancing.
Instead, look into government-backed options with more flexible credit requirements. Under agency guidelines, FHA, VA and USDA streamline refinances don’t require a credit check for borrowers who already have that loan type. You’ll still want to weigh the costs — like FHA’s ongoing mortgage insurance or VA’s one-time funding fee — against the savings.
If a streamline option isn’t available to you, it’s worth taking time to improve your credit score before you refinance. Paying down credit card balances and catching up on late payments can improve your score in a matter of months and help you qualify for a rate that actually makes refinancing worthwhile.
Qualifying isn’t the same as getting the best rate
Meeting the minimum credit score for your loan type doesn’t necessarily guarantee a competitive rate. It’s a mistake even well-qualified borrowers make. Bankrate Hidden Homeownership Tax research found that 78.7% of refinance borrowers overpaid in 2025 relative to the most competitive rate they could have gotten — a typical overpayment of $3,343 a year. Conventional borrowers are the most creditworthy group in the study, yet they overpaid 89% of the time in 2025 — more often than FHA borrowers (83%) or VA borrowers (81%).
A good credit score is a solid starting point, but it’s not a guarantee you’ll get the lowest rate. Since every lender looks at qualifications a little differently, shopping around and comparing multiple offers can help you land the best overall deal.— Linda Bell, Bankrate Lead Insights Analyst
Compare today’s refinance rates
The average homeowner leaves thousands on the table by not comparing rates. Compare refinance offers and see what you could actually save before you commit.
Learn moreCan you refinance your mortgage with bad credit?
Refinancing with bad credit is possible — but in most cases, you shouldn’t do it just because you qualify. A low score means a higher rate, so the refinance only makes financial sense if the new rate meaningfully beats what you’re already paying once closing costs are factored in. If it doesn’t, the alternatives below are worth exploring before you sign.
Refinance options for bad credit
| Program | Who qualifies | Credit check? | Appraisal? | Costs to expect |
|---|---|---|---|---|
| FHA streamline refinance | Current FHA loan holders | Not required by FHA guidelines | Typically not required | Ongoing mortgage insurance premiums |
| VA IRRRL (streamline refinance) | Current VA loan holders | Not required by VA guidelines | Typically not required | VA funding fee plus closing costs of roughly 1.5% to 3% of the loan |
| USDA Streamlined Assist* | Current USDA loan holders with 12+ months of on-time payments | Typically not required by USDA guidelines | Typically not required | Standard refinance closing costs |
Note that individual lenders can still choose to run a credit check on any of these even when the agency doesn’t require one.
Can’t afford your payment and hoping a refinance can help?
If a refinance won’t get you a meaningfully better rate right now, and none of the programs above apply to you, refinancing isn’t the right tool — you need payment relief, not a new loan. Refinancing into a rate priced for a low-tier credit score can lock you into that higher rate for the next 15 to 30 years just to shave a little off today’s payment. A servicer-side option is often shorter-term, and some — like forbearance — are reversible once your finances recover.
Consider asking your current loan servicer about a repayment plan or loan modification. Unlike a refinance, these options work with your existing loan — and some can be temporary, rather than locking you into new terms for years. Options include a loan modification, forbearance, or repayment plan, and none require you to qualify for an interest rate based on your credit score.
You can also get free, independent guidance from a HUD-approved housing counselor, who can work directly with your servicer on your behalf. These counseling agencies can offer independent advice and can be found through HUD’s counselor locator.
Other factors that affect refinance approval
Your credit score isn’t the only factor lenders will consider when reviewing your application to refinance. As when you applied for your original mortgage, lenders will also review your:
- DTI ratio: If your credit score is strong, you may have more wiggle room to carry a higher-than-ideal debt load. If your credit score is closer to 620, you’ll have less flexibility.
- Loan-to-value (LTV) ratio: Your LTV ratio compares what you still owe to your home’s current value — the lower your LTV, the more equity you have. If you’re doing a cash-out refinance, plan to keep at least 20% equity after cashing out. If you’re doing a rate-and-term refinance, some lenders allow less, though you’ll likely pay mortgage insurance below the 20% equity mark.
- Income and work history: Lenders prefer to see two years in the same job — or at least the same industry — and reliable income.
How to improve your credit score for a refinance
Improving your credit score before refinancing can go a long way toward strengthening your application. To do that, you can:
- Address your credit utilization ratio. Pay down debt so you’re using less than 30% of your available credit, or request a credit limit increase if you’re confident you won’t run up a new balance.
- Pay your bills on time and hold off on new credit. Avoid applying for new credit while you’re preparing to refinance, and submit all your refinance applications within a 14-day window — the safest target, since some FICO models only group mortgage inquiries as one within a 14-day span, while others allow up to 45.
- Stay on top of your credit score. You can review your credit score for free at AnnualCreditReport.com. By keeping tabs on your score, you’ll be able to correct any inaccurate information well before you need to apply for any loan, including a refinance.
Bottom line
Check your credit score, then compare offers from at least three lenders — your score determines the range of rates you qualify for, but not which lender gives you the best rate within that range. Explore the best mortgage refinance lenders to find the one that’s right for you. If your score isn’t where you need it to be, a government-backed streamline refinance or a few months spent improving your credit may serve you better than refinancing right now.
Why we ask for feedback Your feedback helps us improve our content and services. It takes less than a minute to complete.
Your responses are anonymous and will only be used for improving our website.
You may also like
What to do if you are denied a loan
What to know about cash-out auto refinancing
How to get a low-cost mortgage refinance
