When my parents were juggling an operating loan for our family business, the bank always came back to the same three questions: Can you pay, will you pay, and what happens if something goes sideways? Mortgage refinancing is the same story, just with different paperwork. Your credit score is the quick shorthand lenders use for the “will you pay” part, but it is never the only factor.
Below are the credit score ranges lenders commonly use for conventional, FHA, and VA refinances, plus the other underwriting factors that can move your approval odds and the rate or fees you are offered.
First, what score do lenders actually use?
Most mortgage lenders pull scores from the three major credit bureaus (Experian, Equifax, and TransUnion). For underwriting, they typically use your middle score (the one in the middle, not the highest or lowest) if there is one borrower. If there are two borrowers on the loan, many lenders use the lower middle score between the two of you.
One more wrinkle that trips people up: mortgage lenders often use mortgage specific FICO models that can differ from the score you see in a credit card app or monitoring service. That is why “my score is 720” can still turn into “the score used for pricing is 701” once the tri-merge report and mortgage scoring models are in play.
Typical credit score minimums by refinance type
Minimums vary by lender and by your full file, but these ranges reflect how underwriting commonly works in practice.
Conventional refinance (Fannie Mae and Freddie Mac)
- Typical minimum: 620
- Common “comfortable” range for approval: 660 to 700+
- Best pricing range (often): 740+
With conventional loans, your score affects both approval and pricing. It is very normal for two borrowers to both qualify, but for the borrower with the lower score to pay meaningfully more over time because the rate or fees are higher.
FHA refinance
- Typical minimum (many lenders): 580
- FHA guidelines may allow lower: potentially 500 to 579, but many lenders will not, and refinance type and overlays can change what is realistic
- Common “comfortable” range: 620 to 680+
FHA tends to be more forgiving on credit scores than conventional. The trade-off is that FHA loans come with mortgage insurance. On many modern FHA loans, mortgage insurance can last for the life of the loan when the original FHA loan started above 90% LTV (common with small down payments), while some lower LTV cases fall off after a set number of years. Refinancing can also reset mortgage insurance rules depending on the loan and timing.
VA refinance (including IRRRL)
- VA does not set a universal minimum credit score.
- Typical lender expectations: often 580 to 620+ for many VA refinances
- For an IRRRL (VA streamline): many lenders focus heavily on payment history and net tangible benefit, and may be more flexible
Because VA guidelines are different, lenders often place more weight on your recent mortgage payment history and overall risk profile than a single score threshold. In real life, many lenders still apply their own minimums.
How score affects a rate and term refinance
In a rate and term refinance, you are swapping your existing loan for a new one to change your interest rate, term, or both, without taking much (or any) cash out.
Lenders still underwrite these carefully because you are asking for new credit. Your score can influence:
- Whether you are approved (especially in the low 600s and below)
- Interest rate (small score changes can matter a lot over 30 years)
- Fees and pricing adjustments that can show up as points or lender credits
- Whether mortgage insurance is required (conventional) and how much it costs
Score matters for cash-out refinances too. Cash-out simply tends to add extra risk controls on top of the score, like lower max LTV and tighter pricing.
Other factors that can offset or sink a refinance
Underwriting is a balancing act. I have seen borrowers with a decent score get declined, and borrowers with a “so-so” score get approved, because of what sits behind the score.
1) Equity and loan to value (LTV)
LTV is your loan amount divided by the home’s value. In general, more equity improves approval odds and pricing.
- Lower LTV (more equity): less lender risk, often better pricing
- Higher LTV (less equity): tighter underwriting, possible mortgage insurance, and potentially worse pricing
As a rule of thumb, conventional refinances get meaningfully easier when you are at 80% LTV or below, because you may be able to avoid private mortgage insurance.
Also remember that in a refinance, LTV is typically based on the appraised value, unless you qualify for an appraisal waiver. Either way, the number used is what drives the LTV, not what you think the house is worth.
2) Debt to income ratio (DTI)
DTI compares your monthly debt payments (including the new mortgage payment) to your gross monthly income.
Typical conventional targets often land at 43% to 50% depending on the automated underwriting result, the product, and lender overlays. FHA may allow higher DTIs in some cases, but you should not assume that means an easy approval.
If your score is borderline, a high DTI can be the thing that flips your file from “approve” to “refer” or “deny.”
3) Recent late payments, collections, or charge-offs
Nothing spooks underwriting like fresh delinquencies. A 30-day late payment from three years ago is usually less damaging than a 30-day late from the last three to six months.
- Recent mortgage lates are especially problematic for refinancing.
- Patterns of late payments matter more than a single isolated hiccup.
- New collections can create last-minute surprises, even if your score looks “fine.”
4) Employment and income stability
Refinances still require lenders to verify you can repay. If you are self-employed, switched industries, or have variable income, expect more documentation and more scrutiny. This does not mean you cannot refinance. It means your paperwork needs to tell a consistent story.
5) Property type and occupancy
A primary residence single-family home is typically the simplest lane. Condos, multi-unit properties, and investment properties can come with tighter requirements and different pricing, even with the same credit score and LTV.
A practical score guide
Every lender is different, but here is a borrower-friendly way to think about your refinance odds.
- 760+: Typically easiest approvals and strongest pricing, assuming income and equity support the loan.
- 740 to 759: Often still excellent pricing. You are in the “top tier” for many conventional adjustments.
- 700 to 739: Solid approval range for conventional. Pricing is generally good, but not always best-in-market.
- 660 to 699: Still workable for conventional, but pricing can start to feel meaningfully different. DTI and equity matter a lot here.
- 620 to 659: Often the minimum zone for conventional. Expect tighter scrutiny, higher rates, and possibly fewer lender options.
- 580 to 619: Often FHA territory. Conventional options may exist but are more limited and usually expensive.
- Below 580: Refinancing becomes much harder. If it is possible, it tends to require strong compensating factors or a specialized lender.
What to fix before you apply
If you are even a little borderline, the weeks before you apply are a great time for credit housekeeping. These steps are often more impactful than people expect.
Bring all accounts current and avoid new late payments
This is one of the fastest ways to reduce underwriting risk. If you have a recent late, consider waiting until you have re-established a clean recent history, especially for mortgage late payments.
Pay down revolving balances for a quick score bump
Credit card utilization is a big driver of scores. Two tips that commonly help:
- Aim for under 30% utilization on each card, and ideally under 10% if you can.
- Pay before the statement closes, not just before the due date. Scores are often based on what gets reported on the statement.
Do not open or close accounts right before underwriting
New credit inquiries and new accounts can temporarily ding your score. Closing cards can raise utilization by reducing your available credit. If you need a new card or loan soon, do it after the refinance is done whenever possible.
Dispute errors the right way
If there is a true reporting error, correcting it can help. But be careful: some mortgage lenders require disputes to be resolved or removed before closing, and disputes can slow the process. If you are close to applying, talk to your loan officer before filing multiple disputes.
Check for credit report landmines
Before you apply, look for:
- Incorrect late payments
- Balances that are wrong
- Accounts that are not yours
- Student loans showing deferred when they are not, or vice versa
Catching these early helps you avoid a stressful surprise mid-underwriting.
How cash-out changes the bar
If you are taking cash out, lenders typically treat that as higher risk than a rate and term refinance. In many cases you will see:
- Higher score expectations from the lender, even when program guidelines are flexible
- Lower maximum LTV allowed compared with rate and term
- More sensitive pricing when your score is not in top tiers
If your primary goal is a lower payment, you will usually find it easier to qualify by sticking to a rate and term refinance and leaving equity in the home.
Quick FAQ
Can I refinance with a 620 credit score?
Often, yes for conventional and commonly for FHA, but your options and pricing depend heavily on equity, DTI, and whether you have any recent late payments. With a 620 score, shop lenders carefully because overlays vary.
Is 700 a good credit score to refinance?
Yes. A 700 score is generally a strong place to be for approval on many conventional refinances. You may still improve pricing if you can reach 740+, but a lot of borrowers can refinance successfully in the 700 range.
Do I need 740 to get the best refinance rate?
Not always, but 740 is a common pricing tier where many borrowers see noticeably better terms. The exact breakpoints can change and your LTV, loan size, occupancy, and property type also affect pricing.
Will a recent late payment automatically disqualify me?
Not automatically, but it can. A recent mortgage late payment is particularly damaging. A single older 30-day late on a credit card may be workable if everything else is strong, but expect questions and potentially higher pricing.
Does refinancing hurt your credit score?
Refinancing usually triggers a hard inquiry and the new loan can change your average account age. The dip is often modest and temporary. The bigger financial question is whether the refinance meaningfully improves your long-term costs and fits your timeline.
What is a no-cost refinance?
A no-cost refinance usually means you are not bringing cash to closing for lender fees because the costs are covered by a slightly higher rate or a lender credit. It can be a good fit if you expect to move or refinance again before the monthly savings would have paid back the closing costs.
The bottom line
If you want the simplest target, here it is: 620+ is a common floor for conventional refinancing, 580+ is a typical FHA starting point in practice (even if guidelines can go lower), and VA refinances can be more flexible but still often land around 580 to 620+ based on lender rules.
But underwriting is never just a score. If your equity is thin, your DTI is high, or you have fresh late payments, a “good” score can still struggle. If you want to improve your odds quickly, focus on paying down revolving balances, staying current on every account, and avoiding new credit until after you close.
