If your credit score is around 620, you’re in an important spot. A 620 score is the minimum for many lenders for a conventional refinance, but it’s also a threshold where pricing, underwriting requirements, and loan options shift. Many homeowners assume a 620 score isn’t strong enough to refinance — but it may be possible.
The real question is:
What refinance options do you qualify for at 620, and what pricing should you expect?
This guide breaks down how refinancing works with a 620 credit score in 2026, including which loan types accept this credit score, how lenders treat this credit tier, the potential additional costs, and how alternatives like FHA and VA compare.
Key Takeaways
You may be eligible to refinance with a credit score of 620
620 is the minimum score for many conventional refinances
FHA refinances also accept 580+, so a 620 likely qualifies
VA refinances often allow credit scores as low as 620, depending on the lender
Pricing adjustments may increase your rate and fees
Even a small credit improvement (to 640 or 660) may lower the cost
💡 Pro Tip: Because lender pricing can vary widely when you have a 620 credit score, it’s important to get multiple offers and compare them side by side.
Can You Refinance with a 620 Credit Score?
Yes — both conventional and FHA refinances are often available at 620.
620 is considered “fair” credit, but still well within eligibility for multiple refinance programs. Rates and fees may be higher than for borrowers with 700+ credit, but refinancing may still be possible.
Loan Programs That Allow a 620 Credit Score
Let’s break down which refinances you may qualify for at this credit tier.
Conventional Refinance Options
A 620 score is the cutoff for most conventional refinances through Fannie Mae and Freddie Mac, but exact requirements vary by lender. However, a score of 660 or higher is often needed for a conventional cash-out refinance, depending on lender overlays.
What to Expect at 620
Approval may be possible depending on other factors
Pricing adjustments may increase the rate
Lenders may require more documentation
Fees or discount points may be higher
Lenders may require a strict review of your debt-to-income ratio and reserves
Conventional refinances reward higher credit tiers. At 620, you qualify — but not at top pricing.
FHA Refinance Options
Because FHA allows scores as low as 580, a 620 borrower is well above the minimum, depending on lender overlays. Because FHA requirements are often more flexible, borrowers with a 620 credit score often have an easier time qualifying for a rate-and-term and cash-out refinance.
VA Refinance Options
VA loans are the most flexible of all loan programs, but is only offered to eligible veterans and their spouses. The VA doesn’t require a specific credit score, but many lenders have overlays, especially for cash-out refinances, which usually fall around the 620 mark.
💡 Pro Tip: Pricing can vary significantly for the same loan. Because your credit score is borderline for most lenders, compare your options to ensure you get competitive loan terms.
Refinancing at 620: What Rates Can You Expect?
Because a 620 credit score is considered fair, you’ll likely qualify, but not for top-tier pricing.
At 620, you may pay:
Slightly rates higher than top-tier borrowers
Hundreds or thousands more in lender fees
Actual rates and add-ons vary by lender and borrower profile
These pricing differences can change your break-even point and long-term interest savings — another reason to benchmark your offer with Fincast.
How Your 620 Score Affects Lender Fees
Lenders often use risk-based pricing adjustments.
At 620, you may see:
Higher origination charges
Discount points required to access competitive rates
Higher PMI rates (for conventional refinances above 80% LTV)
Example
Borrower at 620:
May pay 1–2 points to get a certain rate
Borrower at 740:
May pay 0 points for the same rate
This can mean a several-thousand-dollar difference in upfront cost.
How a 620 Score Affects PMI (If LTV Is >80%)
If refinancing a conventional loan above 80% LTV:
PMI rates are higher at 620
Premiums can be significantly more expensive
Removing PMI through refinancing becomes more valuable once you reach 80% LTV
If the PMI cost is too high at 620, switching to FHA may be more affordable due to lower MIP.
When a 620 Score May Work Well for Refinancing
Refinancing with a 620 score makes sense in scenarios like:
1. Rates have dropped meaningfully since your original loan
Even with a higher pricing adjustment, you may still save.
2. You want to eliminate an adjustable-rate mortgage
A fixed loan may stabilize monthly payments.
3. You’re replacing high-interest debt with a cash-out refinance (via FHA or VA)
If the math supports it, this can improve monthly cash flow.
When a 620 Score May Not Be Ideal
You might want to improve your score before refinancing if:
1. Your LTV is high
PMI may be expensive.
2. Lender-required points make the refinance too costly
This can extend your break-even period.
3. You want to do a conventional cash-out
Most lenders will require a score of 660–680+, but it pays to shop around.
4. Your DTI is borderline
Lower scores + higher DTI create underwriting friction.
A small credit improvement can dramatically change your options and pricing.
How to Improve a 620 Score
Even a 20–40 point bump can move you into a lower pricing tier. It can take time, and not every step will improve your score instantly, but with consistency, you may see improvement.
1. Lower your credit utilization
Paying down revolving balances may improve your score within 30–45 days.
2. Avoid new credit inquiries
New credit suppresses your score temporarily.
3. Stay current on all payments
Recent late payments are highly damaging.
4. Dispute inaccurate data
Errors are common and fixable.
5. Avoid closing old accounts
This lowers your credit age.
These small moves can save you thousands in fees or interest.
Why Comparing Lenders Matters Even More at a 620 Score
At 620, lenders are inconsistent:
Some heavily penalize 620 borrowers with points
Some offer fair pricing
Some deny the file outright
Some allow cash-out, others don’t
Some force PMI changes
Because you’re at a credit threshold, the spread between lenders can be significant.
This is exactly what the Fincast platform solves.
💡Pro tip: Two lenders could analyze the same score and produce vastly 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
With a lower credit tier, lenders may add extra fees or points. Fincast helps protect you once you apply with your preferred lender and receive your Loan Estimate.
How it works:
1. Upload your Loan Estimate
No new application.
No extra credit pull.
2. Fincast analyzes your credit-based pricing
It breaks down:
Rates
Fees
Points
Credits
PMI
Closing costs
APR
3. Vetted lenders anonymously compete to beat your offer
You stay hidden while lenders compete for your business.
4. Fincast shows you clear comparisons
If your lender is offering fair pricing, Fincast confirms it. If not, you see exactly how much you can save.
FAQs: Refinancing with a 620 Credit Score
Can I refinance a conventional at 620?
Yes — 620 is often the minimum score lenders require.
Can I cash-out refinance at 620?
It may be possible with an FHA loan, but it may be less likely with a conventional loan.
Is FHA better than conventional at 620?
It depends on the lender and the pricing provided. Comparing your Loan Estimates side-by-side is essential.
Does refinancing hurt your credit?
Your score may experience a small dip from the hard inquiry when you apply, and again when you open the new loan. With on-time payments, it usually resolves itself.
Can I qualify for VA?
Many lenders accept 580–620 for VA IRRRL, but shop around to see what lenders require.
Bottom Line
A 620 credit score does not stop you from refinancing — but it does impact your rate, fees, PMI, and loan options. Conventional refinances may be possible at 620, but pricing may not be ideal. FHA and VA loans often provide strong alternatives with more flexible requirements.
Because lenders treat 620 differently, comparing real offers is essential to avoid overpaying.
Action Checklist
☑️ Confirm your credit score
☑️ Identify your eligible loan types (Conventional, FHA, VA)
☑️ Decide whether cash-out is necessary
☑️ Get your Loan Estimate
☑️ Upload your LE to Fincast
☑️ Compare lenders anonymously
☑️ Choose the refinance that maximizes your savings
👉 Ready to see whether your 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 article is for educational purposes only and does not constitute personalized financial advice. Mortgage requirements vary by lender and individual circumstances. Consult with a licensed mortgage professional for your specific situation.
Disclaimer: Nothing in this content should be considered financial advice. The examples and data shared are for general information only and may not reflect your personal situation. We do not guarantee the accuracy or completeness of the information provided. Always do your own research and speak with a qualified financial advisor before making any financial decisions.
