You may have seen a popular ad that says something like:
“Banks Get Rid Of Credit Score Requirement for Refi”
and are wondering if it is true.
Is it true that banks have dismissed a credit score requirement for refinancing?
But don’t be misled by just that small excerpt thinking that every bank is now not requiring a credit score for all programs because it isn’t true. What is true though is that some lenders waive a credit score requirement for some loan programs – and the key is to know which lenders and which programs are available where you can refinance without a credit score.
Credit Score Requirements For Refinancing
When it comes time to refinance your house, the first thing a lender will look at is what loan program will best fit the situation you are in. Many times the loan program that you want to refinance into will depend on what loan program you are currently in. For example, if you are in an FHA loan currently it is common for your best option for refinancing to be the FHA streamline refinance program. If you are in a VA loan, the most common refinance program is the VA streamline refinance. If you are in a conventional loan, the most common loan program to refinance into is another conventional loan, etc.
Each loan program will have different credit score requirements based on the lender. So for example, it is possible that you could speak with one lender about a VA streamline refinance and they require a minimum credit score of 620 and then speak with another one and find out that they don’t require a credit score for a refi at all.
So each lender will have different credit score requirements for each refinance program and they will be different by lender.
Find The Right Lender
The best thing you can do is to find the right lender for your situation – which is easier said than done! If you are looking for a bank that has dismissed a credit score requirement, you will want to first be very aware of what loan program you are interested in refinancing into and then speaking with multiple lenders who offer that program. For example, if you are interested in a VA streamline lender that doesn’t require a minimum credit score – you will have much more luck than trying to find a lender who doesn’t require a credit score on any loan program.
Get matched with the right lender for your situation by submitting your information below – we will analyze your situation and match you up with a great lender who can help you.