Refinancing With Poor Credit:
It's More Possible Than You Think
Many homeowners believe poor credit eliminates their refinance options entirely — but that's not true. FHA, VA, and non-QM programs offer paths forward for borrowers with lower scores. Here's what you need to know.
FHA Refinance
FHA allows credit scores as low as 500 with 10% equity or 580 with 3.5%. FHA streamline skips credit checks entirely.
VA Refinance
VA loans have no minimum credit score for the IRRRL streamline. Even with a FICO score in the 500s, VA is a strong path.
Non-QM Programs
Non-QM lenders evaluate equity, income, and assets more flexibly than credit score alone — designed for credit-challenged borrowers.
Rate Impact
Poor credit typically means rates 1-2% higher. But refinancing now can still beat your current rate and save money.
Boost Your Refinance Chances
Fix Credit Report Errors
Dispute inaccuracies — even 20-30 points can change which programs you qualify for.
Lower Utilization
Pay card balances below 30% of limits. Utilization is one of the fastest ways to raise your score.
Build Home Equity
More equity (20%+) compensates for lower credit and unlocks better pricing on many programs.
Talk to a Specialist
A mortgage professional can match you to underutilized programs that standard lenders won't offer.