Most homeowners need a credit score of at least 620 to refinance a home, but better rates usually start around 680 and above. Government-backed refinance options may allow scores as low as 580 or even 600 in specific cases. A higher credit score reduces interest rates, closing costs, and lender risk. If your score is below 620, refinancing is still possible, but options are limited and more expensive.
Understanding credit score requirements helps you avoid rejection, compare lenders confidently, and refinance at the right time for maximum savings.
What credit score do you need to refinance a home?
The credit score you need to refinance a home typically ranges from 620 to 740, depending on the loan type and lender. Conventional loans demand higher scores, while government-backed loans offer more flexibility. The stronger your credit profile, the better your interest rate and approval odds.
Lenders use your credit score to assess repayment risk. A higher score signals reliable payment behavior and financial stability. This directly impacts your interest rate, loan terms, and whether private mortgage insurance is required.
| Refinance Loan Type | Typical Minimum Credit Score | Best Rates Start Around |
|---|---|---|
| Conventional Refinance | 620 | 700 |
| FHA Refinance | 580 | 660 |
| VA Refinance | 600 | 680 |
| USDA Refinance | 640 | 700 |
Borrowers with scores above 740 usually qualify for the lowest interest rates and reduced lender fees.
Latest Update
- Lenders are tightening refinance approval standards due to rising interest rate volatility, making credit scores more important than before.
- Search trends show increased demand for low-credit-score refinance options, especially FHA and VA streamline programs.
- More lenders are using trended credit data to evaluate long-term payment behavior instead of single snapshot scores.
- Cash-out refinancing now requires stronger credit profiles as lenders focus on risk reduction.
What is the minimum credit score to refinance a house?
The minimum credit score to refinance a house is usually 620, but certain programs allow lower scores. FHA refinances may approve borrowers with scores around 580, while VA loans sometimes accept scores near 600. Lender overlays may increase these minimums.
Minimum scores only represent eligibility, not affordability. Borrowers at the minimum threshold often face higher interest rates, stricter documentation, and added mortgage insurance costs.
- Lower credit score equals a higher monthly payment
- Interest rates increase as score decreases
- Closing costs may be higher
- Loan choices become limited
If your score is near the minimum, improving it even slightly before applying can lead to meaningful savings.
Can I refinance my home with a 600 credit score?
Yes, you can refinance your home with a 600 credit score, but options are limited. FHA and VA refinance programs are the most realistic choices. Conventional refinancing with a 600 score is rare and expensive.
With a 600 score, lenders focus heavily on compensating factors such as income stability, low debt-to-income ratio, and strong payment history. Expect higher interest rates and mortgage insurance requirements.
| Credit Score | Refinance Approval Chances | Expected Interest Cost |
|---|---|---|
| 600 | Moderate with FHA or VA | High |
| 650 | Good | Medium |
| 700 | Very Strong | Low |
Raising your score above 640 can dramatically expand lender options.
How can I raise my credit score 100 points in 30 days?
Raising your credit score 100 points in 30 days is difficult but possible in specific situations. The fastest gains come from reducing credit card balances, correcting errors, and addressing missed payments. Results depend on your current credit profile.
- Pay down credit card balances below 30 percent utilization
- Dispute inaccurate negative items on credit reports
- Bring all accounts current immediately
- Avoid new credit applications
- Ask for goodwill adjustments on late payments
Even a 40 to 60 point increase can significantly improve refinance terms and lender confidence.
What is the best company to use for a refinance?
The best company to use for a refinance depends on your credit score, loan type, and goals. Large banks offer stability, while online lenders provide speed and competitive pricing. Credit unions often deliver lower fees and personalized service.
| Lender Type | Best For | Potential Drawback |
|---|---|---|
| Big Banks | High-credit borrowers | Slower approvals |
| Online Lenders | Fast refinancing | Limited personal support |
| Credit Unions | Lower fees | Membership required |
| Mortgage Brokers | Comparing multiple lenders | Broker fees |
Always compare at least 3 offers to secure the best rate.
Key Takeaways
- Most refinances require a minimum credit score of 620
- Scores above 700 unlock the best rates and terms
- A 600 credit score refinance is possible, but costly
- Improving credit even slightly can save thousands of dollars
- Lender comparison is critical for refinancing success
Frequently Asked Questions
What credit score gives the best refinance rate?
A credit score of 740 or higher typically qualifies for the lowest refinance interest rates and minimal fees.
Does refinancing hurt your credit score?
Refinancing may cause a small temporary dip due to a hard inquiry, but long-term savings often outweigh the impact.
Can I refinance without income verification?
Most refinances require income proof, but streamline refinance programs may offer reduced documentation.
How soon can I refinance after buying a home?
Many lenders require at least 6 months, though some programs allow earlier refinancing.
Is cash out refinance harder to qualify for?
Yes, cash-out refinancing requires higher credit scores and stronger financial profiles.
Do refinance rates differ by lender?
Yes, rates and fees vary widely, making comparison essential.
Conclusion
Refinancing a home starts with understanding your credit score and how lenders view it. While 620 is the common minimum, better scores open doors to lower rates, reduced costs, and smoother approvals. Even borrowers with a 600 score have options through government-backed programs, though improving credit beforehand delivers real savings. By choosing the right lender, boosting your score strategically, and timing your refinance wisely, you can reduce monthly payments and strengthen your financial future.