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 Loan Refinance

• Minimum Credit Score:
  • Typically 620 or higher.
• Maximum Debt-to-Income Ratio (DTI):
  • Generally 43%, though some lenders may allow up to 50% with compensating factors.
• Additional Notes:
  • Requires at least 20% equity for a cash-out refinance.

2. FHA Loan Refinance

• Minimum Credit Score:
  
  • 580 for loans with lower equity or streamlined refinancing.
• Maximum Debt-to-Income Ratio (DTI):
  • Typically 50% or lower, but lenders may allow higher ratios with compensating factors.
• Additional Notes:
  • FHA Streamline Refinances often require less documentation and no appraisal.

3. VA Loan Refinance

• Minimum Credit Score:
  • No official minimum; most lenders require 620 or higher.
• Maximum Debt-to-Income Ratio (DTI):
  • Typically capped at 41%, though higher ratios may be allowed with residual income.
• Additional Notes:
  • For VA cash-out refinancing, you may borrow up to 100% of your home’s value in some cases.

4. USDA Loan Refinance

• Minimum Credit Score:
  • 640 or higher is generally required.
• Maximum Debt-to-Income Ratio (DTI):
  • Typically 41%, though higher ratios may be accepted with strong compensating factors.
• Additional Notes:
  • USDA Streamline Refinances offer a simplified process for existing USDA loan holders.

Other Factors to Consider

1. Home Equity Requirements:

   • For cash-out refinancing, most lenders require 20% equity in your home.

2. Income Verification:

   • Standard income documentation is required, such as pay stubs, tax returns, or profit-and-loss statements for self-employed borrowers.

3. Closing Costs:

   • Typically range from 2%-6% of the loan amount, though no-closing-cost options are available.