Refinancing eligibility depends on the type of loan program you choose. Each program has specific minimum credit score and debt-to-income (DTI) requirements. Here’s a breakdown:

1. Conventional Loans

• Minimum Credit Score:
  • Typically 620 or higher.
• Maximum Debt-to-Income Ratio (DTI):
  • Generally capped at 43%, though some lenders may allow up to 50%.
• Equity Requirement:
  • At least 20% equity in your home is required.

2. FHA Cash-Out Refinance

• Minimum Credit Score:
  • 580 for higher cash-out refinancing.
• Maximum Debt-to-Income Ratio (DTI):
  • Typically 50% or lower.
• Equity Requirement:
  • Minimum 20% equity required.

3. VA Cash-Out Refinance

• Minimum Credit Score:
  • No official minimum; most lenders require 620 or higher.
• Maximum Debt-to-Income Ratio (DTI):
  • Typically capped at 41%, though exceptions are possible with sufficient residual income.
• Equity Requirement:
  • Borrowers may access up to 100% of their home’s value in some cases.