What Credit Score Do You Need to Refinance in 2026?

If you’re thinking about refinancing in 2026, your credit score will play one of the largest roles in determining your approval odds, the rate you get, and how much you pay in lender fees. But here’s the part most homeowners don’t realize:

You don’t need perfect credit to refinance — different loan programs have very different score requirements.

Whether your goal is to lower your rate, remove PMI, shorten your loan term, or tap equity with a cash-out refinance, your credit score influences everything from your interest rate to your break-even point.

This guide breaks down the minimum credit score needed for each refinance type in 2026, explains how lenders price credit, shows how much your score affects your rate, and outlines how to position yourself for the best possible offer — especially when benchmarking with Fincast.

• Credit score requirements, rates, and fees vary by lender, market conditions, loan structure, and borrower profile.

Key Takeaways

• Conventional refinances generally require a credit score of 620 or higher

• FHA refinances allow scores as low as 580, sometimes lower

• VA refinances have no official minimum, though most lenders prefer 620+

• Cash-out refinances require higher scores, usually 660–680+

• The best pricing typically starts around 740–760+

• Even a 20–40 point credit improvement can save thousands over the life of your loan

• Lender requirements vary; always check to see what each lender needs for approval.

💡 Pro Tip: Because lender pricing can vary widely even for the same loan and borrower, it’s important to get multiple offers and compare them side by side.

What Credit Score Do You Need to Refinance in 2026?

The minimum credit score depends on the loan type, the lender, and whether the refinance is rate-and-term or cash-out.

Conventional Refinance Requirements

Minimum Credit Score: 620

Conventional loans from Fannie Mae and Freddie Mac are the most common type of refinance. The average minimum credit score is 620, but actual requirements vary by lender.

Best Pricing Tier: 740+

Many lenders offer their best interest rates and lowest fees to borrowers with scores of 740 or higher.

Good Pricing: 700–739

Rates are often still competitive in this credit score range, with mild adjustments.

Acceptable: 660–699

These credit scores make you eligible for most refinances, but with higher pricing adjustments.

Bare Minimum: 620–659

You may still be eligible, but with:

• Higher rate

• Higher fees

• Additional underwriting scrutiny

• Limited cash-out options

Cash-Out Refinance Requirements

Most lenders require:

• 660+ for cash-out

• 700+ for larger loan amounts

Cash-out loans always involve higher risk, which means stricter credit standards, but exact requirements vary by lender.

💡 Pro Tip: Pricing can vary significantly for the same loan. You’ve worked hard to build your credit score; make sure you reap the benefits by getting competitive loan terms.

FHA Refinance Requirements

FHA loans are one of the more flexible refinance programs in 2026.

Minimum Score: 580

The FHA requires a minimum score of 580, but some lenders may require a higher score in different circumstances for these loans:

• Rate-and-term

• FHA Streamline

Scores Below 580

While the FHA requires a 580 score, they allow lenders to accept scores below 580 with the following:

• 10% equity

• Strong compensating factors

• Manual underwriting (varies)

FHA Cash-Out Refinance

When you want to tap into your home’s equity on an FHA loan, most lenders require a 620+ credit score. Some may allow lower scores, but will increase pricing accordingly.

VA Refinance Requirements

VA loans are among the most flexible programs for eligible veterans and their spouses.

Minimum Score: No official VA minimum

Technically, the VA doesn’t require a minimum credit score, but lenders typically require:

• 620+ for IRRRL (VA streamline)

• 620–640+ for cash-out

Some lenders allow lower scores if residual income is strong.

Jumbo Refinance Requirements

Jumbo loans have the highest standards because their loan amounts exceed standard loans, posing a higher risk to lenders.

Minimum Score: 680–700

Many lenders require scores of 680-700 or higher, depending on the borrower's profile.

Best Pricing: 740–760+

Borrowers with excellent credit often receive:

• Much better rates

• Lower fees

• More favorable underwriting

How Your Credit Score Affects Your Refinance Rate

Your credit score influences your risk-based pricing, which can significantly change your rate.

Example: $400,000 Refinance, 30-Year Fixed

• 760+ score: 5.75%

• 720–739 score: 5.875%

• 680–699 score: 6.125%

• 620–639 score: 6.50%+

• Rates are for illustrative purposes only. Real rates and terms may vary.

A 0.25%–1.00% difference in rate could mean:

• $50–$300 more per month

• $10,000–$60,000 more in lifetime interest

This is why even modest credit improvements matter.

💡 Pro Tip: If you’ve worked hard and hit a 760+ credit score, don't lose your good pricing to a 0.25% rate markup that shouldn't exist. Before signing, upload your Loan Estimate to Fincast to ensure you have a competitive offer.

How Credit Score Affects Fees and Points

Credit score impacts more than your rate — it affects the cost to access that rate.

With lower credit scores, lenders often charge higher:

• Origination fees

• Discount points

• Underwriting fees

• PMI premiums (for conventional refinances)

Example

Borrower A (760 score)

• Fees: $2,000

• No points required

Borrower B (680 score)

• Fees: $6,500

• Required: 1 discount point ($4,000)

• Rates and terms are for illustrative purposes only and do not reflect actual rates or terms.

Same loan amount.

Same lender.

$4,500 difference in cost.

This is why comparing APR and fees is essential — and why borrowers often overpay without realizing it.

How Credit Score Affects PMI (Private Mortgage Insurance)

If you're refinancing a conventional loan with an LTV over 80%, your credit score determines your PMI cost.

High Score (760+)

Borrowers with a credit score of 760 or higher often pay the lowest PMI premiums.

Moderate Score (680–720)

PMI costs start to increase slightly at credit scores of 680-720.

Lower Score (<660)

When credit scores drop below 660, lenders often charge much higher PMI — often double the price.

Removing PMI through refinancing is one of the best savings opportunities, but your credit score determines how affordable PMI is while you’re still paying it.

How to Improve Your Credit Score Before Refinancing

Small improvements can lead to major savings.

1. Lower Your Credit Card Utilization

The fastest way to boost your score — sometimes within 30 days, but each borrower differs.

2. Avoid Opening New Accounts

Each time you open a new account, the lender pulls your credit, which temporarily lowers your score.

3. Check for Reporting Errors

Credit reports aren’t always accurate. Check your credit reports often (for free at www.annualcreditreport.com) and dispute inaccuracies with the credit reporting bureaus.

4. Avoid Late Payments

A single late payment can drop your score by 50–100 points, depending on your overall credit profile.

5. Keep Old Accounts Open

This helps maintain credit history length. The longer your credit history is, the stronger it looks to the credit bureaus.

6. Pay Down Installment Loans (Optional)

It may not help as much as paying down revolving balances, but every little bit helps.

💡 Pro Tip: You’ve spent months working on your credit score. A bad refinance offer can erase those gains. Before you sign, verify your pricing matches your credit scores.

When Your Credit Score Matters Most

Credit score has the biggest impact when:

• You’re near a pricing tier threshold (e.g., 740, 700, 680)

• You need a cash-out refinance

• You want to remove PMI

• Your LTV is high

• You're refinancing a jumbo loan

Even a small shift over a tier boundary can significantly drop your rate.

Why Credit Score Makes Comparing Refinance Offers Hard

Every lender:

• Applies credit tier adjustments differently

• Uses different overlays

• Charges different points for the same score

• Prices PMI differently

• Has different underwriting tolerances

💡Pro tip: Two lenders could analyze the same score and produce wildly different offers. This is exactly where Fincast gives homeowners a significant advantage. Upload a single Loan Estimate and get competing offers to see where your offer stands.

How Fincast Helps You Get the Best Credit-Based Refinance Pricing

Fincast helps you confirm that you aren’t overpaying because of how one lender interprets your credit score.

Here’s how it works:

1. Upload your Loan Estimate

Apply with a single lender and get your Loan Estimate. Take two minutes to upload it to Fincast. No new credit pull. No additional application.

2. Fincast analyzes your credit-based pricing

It evaluates:

• Rate

• APR

• Fees

• Points

• Credits

• PMI

• Rate-cost tradeoffs

• Break-even implications

3. Vetted lenders anonymously compete to beat your deal

Your identity stays hidden — so no spam, no sales calls, while you receive potentially competitive deals.

4. You receive a transparent comparison

If your offer is excellent, Fincast confirms it. If not, you’ll see exactly how much you can save by choosing another lender.

FAQs: Credit Score Requirements for Refinancing

What’s the minimum score for a refinance?

Every lender has different credit score requirements, but on average, conventional loans require at least a 620 credit score, FHA loans a 580, VA typically 620, and jumbo loans between 680 and 700. These numbers can vary significantly by lender.

Does refinancing hurt my credit?

You may see a small temporary dip from the hard inquiry and the new loan, but with on-time payments, it should bounce back quickly.

Can I refinance with bad credit?

It may be possible. Every lender has different requirements, and FHA Streamline and some VA programs are flexible.

Will a higher credit score always mean a lower rate?

Lenders base interest rates on many factors, including credit scores. A higher credit score increases your chances of a lower rate, but it’s not a guarantee.

How do I know if my credit-based pricing is fair?

The best way to determine if your credit-based pricing is fair is to compare it to other offers from reputable lenders. If you don’t have time to do this yourself, you can upload your Loan Estimate to Fincast to get offers from vetted lenders quickly.

Bottom Line

Your credit score significantly affects your refinance approval, interest rate, lender fees, PMI, and long-term savings. While conventional refinances typically require 620+, FHA and VA provide flexible alternatives — and the best pricing often begins at 740+.

But because lenders price credit differently, comparing offers is essential to avoid overpaying.

Action Checklist

☑️ Check your current credit score

☑️ Pay down revolving debt

☑️ Avoid new credit inquiries

☑️ Gather your Loan Estimate

☑️ Upload your Loan Estimate to Fincast

☑️ Compare lenders anonymously

☑️ Lock in the refinance that maximizes your credit-driven savings

👉 Ready to see whether your 2026 credit score qualifies you for lower refinance rates and fees? Upload your Loan Estimate to Fincast and let vetted lenders compete anonymously to offer you their best pricing — no spam, no extra credit pulls, just savings.

• This blog is for educational purposes only. Consult a licensed mortgage professional regarding your personal situation.