Credit Score To Refinance Your Home: Requirements by Loan Type

Written by  Theresa Stevens

Edited by  Crissinda Ponder

+ 1 More

Updated Aug 26, 2025 Content was accurate at the time of publication.

Most lenders require a minimum 620 credit score to refinance a home loan, though the requirements vary by loan type. Generally speaking, the higher your credit score, the better your refinance rate. Getting your credit in shape before refinancing is the best way to snag competitive rate offers.

What credit score do you need to refinance your home?

Your mortgage refinance eligibility depends on your credit score and three other factors: debt-to-income (DTI) ratio, loan-to-value (LTV) ratio and your chosen refinance program. 

Refinance credit score requirements by loan type

Here are the credit score requirements for a rate-and-term refinance (traditional refinance) for common mortgage programs.

Conventional loans

Minimum credit score needed: 620 to 720

When refinancing a single-family home, the minimum credit score is generally 620. However, depending on your DTI and LTV ratios, you may need a higher score to refinance a conventional loan. For example: 

Your lender may require proof of mortgage reserves ranging from two to six months’ worth of mortgage payments if your credit score is between 620 and 700. You’ll also pay for refinance closing costs ranging between 2% and 6% of your loan amount. If your LTV ratio is higher than 80% when you refinance, you may also have to pay for private mortgage insurance (PMI). 

Ready to compare refinance offers?

FHA loans

Minimum credit score needed: 500 to 580 

Your LTV ratio determines your minimum credit score requirement for a rate-and-term refinance on an FHA loan: 

Besides standard FHA closing costs, you’ll pay upfront and annual FHA mortgage insurance premiums.

VA loans

Minimum credit score needed: No minimum, but lenders typically require 620 

The VA doesn’t set a minimum credit score for rate-and-term refinances, but lenders often require a minimum 620 score. The VA only offers VA loans to borrowers serving or retired from the military or their surviving spouses. 

Eligible VA borrowers can finance up to 100% of their home’s value with a rate-and-term refinance. VA closing costs may include a VA funding fee, but there’s no mortgage insurance requirement.

USDA loans

Minimum credit score needed: No minimum, but lenders typically require 640 

The USDA backs refinances for borrowers with current USDA loans. Borrowers can refinance up to 100% of their home’s value and roll closing costs into the loan. A 640 score is the benchmark for a rate-and-term refinance, but lenders may accept lower scores on a case-by-case basis.

Jumbo loans

Minimum credit score needed: Varies by lender, typically 680 to 700 

Jumbo loans are for borrowers who need a loan amount higher than the conforming loan limit, which is $806,500 for most one-unit properties in the U.S. To refinance a jumbo mortgage, you’ll generally need at least a 680 to 700 credit score and a maximum 45% DTI ratio. 

Estimate your new monthly payments using our refinance calculator.

Cash-out refinance credit score requirements

A cash-out refinance allows you to take out a new mortgage for more than you owe on your current loan and pocket the difference between the two loans in cash. The credit score you’ll need for a cash-out refinance depends on your chosen loan program:

Most lenders have an 80% LTV ratio limit for cash-out refinances. However, VA lenders allow qualified borrowers to refinance with up to a 90% LTV ratio in most cases. 

Can you refinance with bad credit?

You can refinance with bad credit or no credit, in some cases. If your credit score is on the lower side, here are a few loan programs to consider:

FHA streamline refinance

The FHA streamline refinance may not require a full credit check for existing FHA borrowers. You won’t need income documents, and there’s no home appraisal requirement. Closing costs are lower than a standard refinance.

VA interest rate reduction refinance loan

The VA’s interest rate reduction refinance loan (IRRRL) is a streamline refinance program with no credit score requirement for existing VA borrowers. Like the FHA streamline, you won’t need to provide income documentation or pay for an appraisal. You’ll still be responsible for closing costs, though, including a VA funding fee equal to 0.5% of your loan amount (unless you qualify for a VA funding fee exemption).

USDA streamlined assist refinance

The USDA streamlined assist refinance program is reserved for current USDA borrowers. Lenders won’t require a credit review and, in most cases, there’s no appraisal requirement.

How to boost your credit score before refinancing

Getting your credit score in shape before you apply for a refinance can increase your approval odds. Here are some steps to help improve your credit score.

1. Keep track of your credit score

It can be challenging to make a plan to fix your credit without understanding your credit score and what’s in your credit report. Knowing your credit score will help you determine if you’re eligible to refinance. It can also identify what improvements you should make to increase it. 

Don’t know your credit score? Get your free score on LendingTree Spring today.

2. Dispute credit report errors

Review your credit report for accounts you don’t recognize. Dispute inaccurate or false data with any of the three major credit bureaus — Equifax, Experian and TransUnion.

3. Make all payments on time

Your payment history accounts for 35% of your credit score. Making on-time payments on all of your credit accounts is the most important thing you can do to boost your score.

4. Avoid closing accounts

Closing old credit accounts can hurt your credit score. Even if you’re not using old credit cards, keeping those accounts open will help the “credit history length” component of your score rating, which accounts for 15% of your score.

5. Pay down nonmortgage debt

Your credit utilization ratio — the percentage of the credit you’re using relative to your available credit — also has a big impact on your credit score. Paying down your credit card balances to below 30% of your available credit can improve your credit score. For installment debts like auto, personal or student loans, make extra payments to shrink your balances sooner.

6. Don’t open any new accounts

Opening a new credit account usually results in a hard inquiry, which can negatively impact your credit score. Plus, applying for new credit too close to refinancing can be a red flag to lenders. Wait until after your mortgage refinance is complete before opening new credit accounts.