Quick answer
To refinance you generally need enough equity for your loan type, income that keeps debt-to-income within limits, and a clean recent payment record. Conventional loans allow up to 97% of value on a rate-and-term refinance but only 80% with cash out, and the loan being replaced must be 12 months old for a cash-out. Fannie Mae’s automated approvals allow debt-to-income up to 50%. FHA and VA streamlines need 6 payments and 210 days of seasoning but far less paperwork.
Key facts
620
Fannie Mae minimum score, manual underwriting (fixed rate)
Fannie Mae Selling Guide B3-5.1-01 · Apr 22, 2026
12months
Conventional cash-out: existing loan at least
Fannie Mae Selling Guide B2-1.3-03 · Dec 10, 2025
210days
FHA Streamline: days since the current loan closed
FDIC Affordable Mortgage Lending Guide (summary of HUD Handbook 4000.1) · Oct 28, 2026
Requirements at a glance
| Conventional (Fannie Mae) | FHA | VA | |
|---|---|---|---|
| Credit score | No set minimum for Desktop Underwriter approvals; 620 for manual underwriting | At least 500; no credit check on a non-credit-qualifying Streamline | VA’s and the lender’s credit standards |
| Maximum loan-to-value | 97% rate-and-term (fixed); 80% cash-out | Streamline: no limit; cash-out: 80% | Cash-out: up to 100% in VA’s rules; lenders may set less |
| Debt-to-income | Up to 50% through Desktop Underwriter; 36% to 45% manual | 31% / 43% on manual approvals; not calculated on a non-credit-qualifying Streamline | Lender reviews income under VA standards |
| Waiting period | Cash-out: loan at least 12 months old, on title 6 months | Streamline: 6 payments and 210 days since closing | Refinancing a VA loan: 6 payments and 210 days from the first due date |
| Appraisal | Usually; sometimes replaced by value acceptance | Not on a Streamline | Ordered by the lender on a cash-out |
Lenders can add their own requirements on top of these — called overlays — such as a higher minimum score. If one lender says no, another may say yes.
Credit score
Fannie Mae doesn’t set a minimum score for loans run through its Desktop Underwriter; the system weighs your score alongside equity, debts and reserves. Manually underwritten fixed-rate loans need at least 620. In practice most lenders set a floor of their own, and your score drives the rate you are offered, so a few points can matter.
FHA accepts scores down to 500, and its non-credit-qualifying Streamline skips the credit check entirely — the lender verifies your mortgage payment history instead. VA asks you to meet VA’s and the lender’s credit standards. Shop lenders within 45 days so the credit checks count as a single inquiry. More in our credit score guide.
Equity and loan-to-value
Loan-to-value (LTV) is the new loan divided by the home’s value. It decides whether you can refinance at all, whether you can take cash out, and whether you pay mortgage insurance.
$360,000 home (near the US median value) with $250,000 owed — LTV 69.4%
| Limit | Largest loan | What it means |
|---|---|---|
| Conventional rate-and-term, 97% | $349,200 | Plenty of room to roll in closing costs |
| No PMI on a conventional loan, 80% | $288,000 | Stay at or below this to avoid mortgage insurance |
| Conventional or FHA cash-out, 80% | $288,000 | Up to $38,000 of cash before closing costs |
If the value has fallen, a conventional refinance may need PMI or may not be possible. An FHA Streamline is the exception: it needs no appraisal and has no LTV limit, because the new loan is based on the FHA balance you already have.
Debt-to-income
Debt-to-income (DTI) is your monthly debt payments — including the new mortgage payment, taxes and insurance — divided by your gross monthly income. Fannie Mae allows up to 50% on Desktop Underwriter approvals; manual underwriting starts at 36% and can reach 45% with strong credit and reserves. FHA’s manual-underwriting benchmarks are 31% for housing and 43% in total without compensating factors. A refinance that lowers your payment also lowers your DTI, which can help. See debt-to-income ratio.
Waiting periods and payment history
- Conventional cash-out: the loan being paid off must be at least 12 months old, measured note date to note date, and a borrower must have been on title for 6 months.
- Conventional rate-and-term: at least one borrower must be on title when you apply. On either type, a home listed for sale must be off the market by the time the new loan funds.
- FHA Streamline: 6 payments made, 210 days since closing, the loan current, and very few recent late payments.
- Any refinance of a VA loan: 6 consecutive monthly payments and 210 days after the first payment due date, whichever is later.
Documents to gather
Income
recent pay stubs and W-2s; tax returns if you are self-employed or the lender asks. VA’s cash-out page, for example, lists recent pay stubs, W-2s and, for many lenders, federal tax returns.
Assets
recent bank and investment statements, especially if you are paying costs in cash.
Your current loan
the latest mortgage statement, and any second mortgage or HELOC details.
The home
your homeowners insurance declarations page and, if you have one, HOA contact details.
Identification
a government ID for each borrower.
A non-credit-qualifying FHA Streamline needs far less — no income documentation or debt-to-income calculation — but the lender still checks your payment history.
Appraisal, and when you can skip it
Most refinances need an appraisal, because value sets the LTV. There are exceptions. FHA doesn’t require one on a Streamline. On conventional loans, Fannie Mae’s Desktop Underwriter may offer “value acceptance” on certain limited cash-out and cash-out refinances, in which case no appraisal is required — the system decides, you can’t request it. When there is an appraisal, the lender must give you a copy at least 3 business days before closing. See appraisal and inspection, and compare offers with our refinance closing costs guide.
Frequently asked questions
What credit score do I need to refinance?
There is no single number. Fannie Mae sets no minimum for loans approved through Desktop Underwriter and 620 for manually underwritten fixed-rate loans; FHA accepts 500 and up, and its non-credit-qualifying Streamline skips the credit check. Most lenders add their own minimums.
How much equity do I need to refinance?
For a conventional rate-and-term refinance, as little as 3% on a one-unit home with a fixed rate (97% LTV), but you will pay PMI above 80%. A cash-out refinance needs you to keep at least 20% (80% LTV) on a conventional loan, and FHA’s limit is 80%. An FHA Streamline has no equity requirement.
How soon can I refinance after buying?
It depends on the loan. A conventional cash-out needs the old loan to be 12 months old; FHA Streamlines and VA refinances need 6 payments and 210 days. Rate-and-term refinances of conventional loans have fewer timing rules, but lenders may set their own.
Can I refinance with a high debt-to-income ratio?
Possibly. Fannie Mae allows up to 50% on Desktop Underwriter approvals, and a refinance that lowers your payment lowers your DTI too. FHA’s non-credit-qualifying Streamline doesn’t calculate DTI at all.
Do I need an appraisal to refinance?
Usually, but not always. FHA Streamlines don’t require one, and Fannie Mae’s Desktop Underwriter may offer value acceptance in place of an appraisal on some conventional refinances.
Can I refinance if I am behind on my mortgage?
It is difficult. An FHA Streamline requires the loan to be current, and lenders generally look for a clean recent payment history on any refinance. If you are struggling, a HUD-approved housing counselor (800-569-4287) can explain your options.
Sources
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- Fannie Mae Eligibility Matrix — Fannie Mae limited cash-out refinance maximum LTV, one-unit principal residence (fixed rate); Fannie Mae cash-out refinance maximum LTV, one-unit principal residence (Apr 1, 2026)
- Fannie Mae Selling Guide B2-1.3-03 — Fannie Mae cash-out: existing first mortgage must be at least; Fannie Mae cash-out: at least one borrower on title for at least (Dec 10, 2025)
- Fannie Mae Selling Guide B3-6-02 — Fannie Mae maximum DTI, Desktop Underwriter loans; Fannie Mae maximum DTI, manually underwritten loans; Fannie Mae maximum DTI, manual underwriting with strong credit and reserves (Apr 2, 2025)
- FDIC Affordable Mortgage Lending Guide (summary of HUD Handbook 4000.1) — FHA Streamline: monthly payments already made; FHA Streamline: days that must pass since the current loan closed (Oct 28, 2026)
- Fannie Mae Selling Guide B3-5.1-01 — Fannie Mae minimum score, manually underwritten fixed-rate loans (Apr 22, 2026)
- HUD Mortgagee Letter 2026-11 — FHA minimum decision credit score (90% LTV cap from 500 to 579); FHA manual underwriting housing ratio (no compensating factors); FHA manual underwriting debt-to-income ratio (no compensating factors) (Oct 8, 2026)
- HUD Mortgagee Letter 2019-11 — FHA cash-out refinance maximum loan-to-value (Aug 1, 2019)
- 38 CFR 36.4306 — VA refinance (including cash-out) maximum loan-to-value allowed by VA (Oct 22, 2026)
- 38 U.S.C. 3709 — VA IRRRL seasoning: consecutive monthly payments made; VA IRRRL seasoning: days after the first payment due date (Oct 28, 2026)
- CFPB — Mortgage credit checks within this window count as one inquiry (Aug 28, 2026)
- CFPB, Regulation B 1002.14 — Lender must give you the appraisal at least this long before closing (or promptly) (Oct 28, 2026)
- HUD — HUD housing counseling referral line (Oct 28, 2026)
- Fannie Mae Selling Guide B4-1.4-10: Value acceptance (appraisal waiver)
- VA: Cash-out refinance loan
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.