Block with "Refinance" next to calculator and plant, symbolizing refinance and credit planning in Colorado

If you’re thinking about refinancing your home in Colorado, one of the first things to check is your credit score. Your score plays a big role in whether you qualify and what kind of rate and terms you can get.

So what score do you actually need to refinance?

Minimum credit scores by loan type

The answer depends on the type of loan you’re applying for and your overall financial picture.

Here’s a general guideline:

  • Conventional refinance: Typically requires a credit score of 620 or higher
  • FHA refinance (including streamline): May allow scores as low as 580
  • VA refinance (IRRRL): Often doesn’t have a minimum credit score, but 620+ is common for best terms
  • Jumbo refinance: Usually requires a score of 680 or above, depending on the lender

The higher your credit score, the better your chance of qualifying for a competitive rate. But even if your score is on the lower end, you may still have options.

Other factors lenders look at

Your credit score is important, but it’s not the only thing that matters when refinancing. Lenders also consider:

  • Your current loan-to-value ratio (how much equity you have)
  • Your debt-to-income ratio
  • Your income and employment history
  • The type of refinance you’re doing (rate-and-term, cash-out, streamline)

If you’re unsure whether you qualify, the best step is to have your situation reviewed. I can help you look at your credit, run the numbers, and see which loan programs make the most sense.

The Consumer Financial Protection Bureau has a great breakdown of things to consider before refinancing.

Can I improve my credit before refinancing?

Yes, and in some cases, even a small bump in your score can make a noticeable difference in your interest rate and payment.

Some quick ways to potentially raise your score include:

  • Paying down credit card balances
  • Avoiding new inquiries or large purchases
  • Making on-time payments leading up to your application
  • Reviewing your credit report for any errors

If you’re in Centennial, Parker, Highlands Ranch, Castle Rock, Denver, or anywhere in Colorado, I’d be happy to walk through your credit and show you what’s possible.

Call or text me at 303-670-0137, email rbaxter@choicemortgage.com, or contact me here.

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