What Credit Score Do You Need to Refinance a Mortgage?

The credit score you need to refinance depends on the loan type. Fannie Mae's minimum for a manually underwritten conventional refinance depends on equity, debt, reserves, and the property and loan type; it sets no minimum when its automated underwriting system approves the loan. FHA requires at least 500 and 580 for its highest loan-to-value limit, and VA sets no minimum of its own. Lenders can require more than the program does. Your score also sets your price: on a Freddie Mac cash-out refinance at 75.01% to 80% loan-to-value, the base credit fee is 1.375% of the loan at a score of 780 or higher and 5.125% below 640, before additional charges.

What are the minimum credit scores by loan type?

For a standard manually underwritten fixed-rate rate-and-term refinance of a one-unit primary home, Fannie Mae permits 620 with a loan no higher than 75% of the home's value, monthly debt payments no higher than 36% of gross monthly income, and reserves covering at least two months of housing payments after closing.

Which score counts. Lenders pull scores from all three credit bureaus. FHA uses the middle of your three scores, or the lower of two, and on a joint loan it uses the lowest borrower's score. For a manually underwritten joint loan, Fannie Mae averages each borrower's middle score (or lower score if only two are available) to check minimum-score eligibility. For pricing on all loans, including those approved through Desktop Underwriter, it uses the lowest of those borrower scores. Fannie Mae requires Classic FICO scores and also accepts VantageScore 4.0 from lenders it has approved to use it.

For the minimums on a purchase loan, see the minimum credit score required, and for program options at low scores, how to get a mortgage with a bad credit score.

How does your score change the rate and fees on a refinance?

Fannie Mae and Freddie Mac charge lenders a one-time fee on each loan they buy, based on your score and your loan-to-value ratio (LTV), the loan amount divided by the home's value. Fannie Mae calls these loan-level price adjustments (LLPAs) and Freddie Mac calls them credit fees. Freddie Mac bills the fee to the lender when it buys the loan, and lenders recover it from you through points at closing or a higher interest rate.

Freddie Mac's base credit fees for refinances with terms over 15 years, effective October 1, 2026:

These base fees exclude additional charges for property and financing features, which are cumulative. For example, a condominium unit other than a detached unit adds 0.750% at 75.01% to 80% LTV, or $2,250 on a $300,000 loan.

At 60% LTV or less, the rate-and-term base credit fee is zero at a score of 680 or higher and no more than 0.375% below that; additional property or financing fees can still apply.

Example (base fees only). On a $300,000 rate-and-term refinance at 78% LTV:

• Score 780 or higher: 0.500% x $300,000 = $1,500.
• Score 680 to 699: 2.250% x $300,000 = $6,750.
• The difference is $5,250, paid as points or through a higher rate.
• Raising the score from 690 to 700 drops the base fee to 1.875%, or $5,625, saving $1,125.
• On a home worth $384,615, paying the loan down to 75% LTV ($288,462) at closing, at a score of 690, drops the base fee to 1.625%, or about $4,688.

Cash-out base fees are higher at every score, and the gap widens below 680. A borrower in the 660 to 679 band pays a base fee of 4.750% on a cash-out at 75.01% to 80% LTV, or $14,250 on $300,000, compared with 2.500% on a rate-and-term refinance of the same size.

How does refinancing affect your credit score?

• Credit checks while you shop. The CFPB says credit checks from mortgage lenders within a 45-day window are recorded as one inquiry. FICO says older score versions group mortgage inquiries within any 14-day span and newer versions within 45 days, so doing your rate shopping within 14 days covers both. FICO also ignores mortgage inquiries from the 30 days before your score is calculated.
• Size of the drop. FICO says one additional inquiry takes less than five points off most people's scores. Inquiries stay on your report for two years but count toward your FICO score for only one.
• The new loan. A new account counts in the "new credit" category, which FICO weights at 10% of the score.

What should you fix before you apply?

1. Check all three reports. You can get free reports from each bureau every week at AnnualCreditReport.com. Dispute errors with both the credit bureau and the company that reported the information.
2. Lower your credit card balances. Amounts owed, including how much of your card limits you use, make up 30% of a FICO score.
3. Pay every bill on time. Payment history is 35% of a FICO score, and FHA also checks your mortgage payments for the past 12 months on a refinance.
4. Hold off on new credit until you close. The CFPB notes that a locked rate can still change if your credit score changes, for example after you take out a new loan or miss a payment.
5. Ask the lender where you fall in the fee table. If you are a few points below a band, or just above an LTV break, a small change before you apply can lower your cost.

What lenders require to refinance covers the debt, equity, and payment-history limits that apply with your score, and refinancing FHA, VA, jumbo, and USDA loans covers the government programs. For how refinancing works overall, see what it means to refinance a mortgage.