Can I Refinance with a 650 Credit Score? Rates & Requirements

If your credit score is around 650, you’re in a credit tier where refinancing becomes significantly more accessible — and usually much more affordable than it is at 620 or below. While 650 isn’t considered excellent, it’s often strong enough to qualify for multiple refinance programs, including conventional, FHA, and VA.

The truth is that a 650 credit score sits in a “middle zone”: You may qualify for most refinance types, but you won’t yet unlock the best possible pricing.

This guide breaks down which refinance options you may be eligible for at a 650 credit score, whether cash-out is allowed, how lenders treat this credit tier, and how to ensure you aren’t overpaying by using the Fincast platform to benchmark your Loan Estimate.

Key Takeaways

• You may be eligible to refinance with a 650 credit score across multiple loan types

• Conventional refinances are often an option at 650

• FHA and VA refinances offer even more flexibility, often with lower pricing adjustments

• Cash-out refinancing is possible, but may require 660–680+ for some lenders

• Rates and fees improve at 650 compared to 620, but not as much as at 680 or 700+

💡 Pro Tip: Because lender pricing can vary widely even for the same loan and borrower, it’s important to get multiple offers and compare them side by side, especially with a 650 credit score.

Can You Refinance with a 650 Credit Score?

A 650 credit score is considered “fair,” but it is often within the qualifying range for:

• Conventional rate-and-term refinances

• FHA refinances

• VA IRRRL and VA cash-out (depending on lender)

• Some conventional cash-out refinances

While the options are wider than at 620, your pricing is still considered mid-tier and may involve rate adjustments or higher fees.

• The actual requirements and eligibility vary by lender and borrower profile.

Refinance Programs Available at 650 Credit Score

Let’s break down which loan programs often accept 650 — and what to expect from each.

Conventional Refinance Options at 650

Conventional refinance programs often require a minimum score of 620, but exact requirements vary by lender.

Conventional Rate-and-Term Refinance

Rate-and-term refinances may have more flexible requirements, making it easier to qualify with a 650 credit score, but it depends on your overall borrower profile.

PMI-Removal Refinance

Yes, if your LTV is 80% or lower.

Conventional Cash-Out Refinance

Many lenders require higher credit scores for a cash-out refinance, often around 660-680, depending on the lender.

But some lenders may allow 650 depending on:

• LTV

• DTI

• Loan size

• Property type

If your score is 650 but other factors are strong, cash-out may still be available.

FHA Refinance Options at 650

Because FHA allows scores as low as 580, a 650 score is often well above the minimum lenders require for FHA refinances.

FHA Rate-and-Term Refinance

A 650 credit score is often well above what lenders require, but actual approval depends on the full borrower profile.

FHA Streamline Refinance

If you already have an FHA loan, you may enjoy the following benefits, depending on the lender:

• No appraisal (often)

• No income verification

• Minimal documentation

• Faster approvals

A 650 score places you in a strong position for FHA Streamline.

FHA Cash-Out Refinance

Because cash-out refinances are riskier for lenders, many require credit scores of 620-640, but exact requirements vary.

VA Refinance Options at 650

VA loans have no official minimum credit score, though most lenders use overlays.

VA IRRRL (Streamline Refinance)

• No appraisal in many cases

• No strict credit score requirement

• 650 is often more than enough

VA Cash-Out Refinance

Because cash-out refinances are riskier, each lender has different credit score requirements, often between 620 and 640, but it varies by lender.

💡 Pro Tip: Pricing can vary significantly for the same loan program. You’ve worked hard to build your credit score; make sure you reap the benefits by getting competitive loan terms.

How a 650 Credit Score Affects Lender Fees

While 650 is acceptable, lenders often still apply pricing adjustments for this tier.

You may experience:

• Higher origination fees

• Discount points required to access lower rates

• Higher PMI (for conventional refinances)

Example of Pricing Adjustments

Borrower at 650:

• May need to pay 0.5–1.5 points to get a desirable rate

Borrower at 700:

• May pay 0 points for the same rate

This can create a $2,000–$6,000 difference in upfront cost.

• These figures are for illustrative purposes only and don’t demonstrate actual rates or fees available today.

💡 Pro Tip: You’ve spent months working on your credit score. A bad refinance offer can erase those gains. Before you sign, verify your pricing matches your credit scores.

How a 650 Score Impacts PMI

If your LTV is above 80% and you’re refinancing conventionally:

• PMI premiums will be higher at 650

• You may want to compare FHA vs. conventional to see which is cheaper

• PMI could double compared to a 740 borrower

If your goal is to eliminate PMI, refinancing at 650 is still beneficial — you just need to ensure your LTV is 80% or lower.

When Refinancing at a 650 Score May Make Sense

Refinancing at 650 can be beneficial when:

1. Rates dropped significantly since your original loan

Even with pricing adjustments, you may still save in the long term.

2. You’re moving from FHA to conventional to remove MIP

If your LTV is below 80%, this may save hundreds per month.

3. You need to consolidate high-interest debt

Cash-out (via FHA or VA) can improve cash flow.

4. You plan to refinance again later

You may secure short-term savings now and refinance again after your score improves.

💡 Pro Tip: If you’ve worked hard and improved your credit score, don't lose your good pricing to a 0.25% rate markup that shouldn't exist. Before signing, upload your Loan Estimate to Fincast to ensure you have a competitive offer.

When Refinancing at 650 May Not Be Ideal

You may want to improve your score before refinancing if:

1. You’re very close to 660 or 680

Both are important pricing thresholds.

2. Lenders require costly discount points

This can extend your break-even point.

3. Your debt-to-income ratio is borderline

Lower scores + higher DTI create stricter underwriting conditions.

4. You’re doing a jumbo refinance

Most jumbo lenders require a credit score of 680–700+.

How to Improve a 650 Score Before Refinancing

Even a small improvement can drastically lower your pricing.

1. Lower revolving utilization

Paying down credit card balances often improves scores quickly.

2. Avoid new credit accounts

Each time you apply for new credit, the lender pulls your credit reports, which can temporarily lower your credit score.

3. Correct any credit report errors

Credit reports often have errors. Ensuring your information is accurate and disputing any inaccuracies could help improve your score.

4. Maintain perfect payment history

No late payments for 12 months is ideal.

5. Avoid closing old accounts

The longer you have had your credit accounts, the “older” your credit age is, which can help your credit score.

Why Comparing Lenders Matters More at 650

At 650, lenders vary widely:

• Some price generously

• Some heavily penalize

• Some require points

• Only some allow cash-out

Because you’re in a mid-tier credit bucket, the difference between lenders can be huge — sometimes thousands of dollars in fees or tens of thousands in long-term interest.

This is exactly why Fincast is so valuable.

💡Pro tip: Two lenders could analyze the same score and produce vastly different offers. This is exactly where Fincast gives homeowners a significant advantage. Upload a single Loan Estimate and get competing offers to see where your offer stands.

How Fincast Protects You From Overpaying at 650

With mid-tier credit, lenders often apply aggressive pricing adjustments.

Fincast helps you compare and avoid inflated offers. All you need to do is apply with a lender of your choice and receive your Loan Estimate.

How Fincast Works

1. Upload your Loan Estimate

No new credit pull.

No new application.

2. Fincast analyzes your credit-based pricing

The platform evaluates:

• Rate

• APR

• Lender fees

• Discount points

• Credits

• PMI pricing

• Break-even impact

3. Vetted lenders anonymously compete to beat your offer

You stay hidden → no spam.

Lenders sharpen pricing → you save money.

4. You get a clear comparison

You’ll see whether your 650 score is being priced fairly — or how much you could save.

FAQs: Refinancing with a 650 Credit Score

Can I do a conventional refinance at 650?

Since the minimum requirement is a 620 credit score, you may be eligible, but it depends on your borrower profile and lender overlays.

Can I cash-out refinance at 650?

Some lenders allow cash-out refinancing with a credit score of 650, but it depends on the borrower and lender.

Is an FHA or a conventional loan better at 650?

Often, FHA offers better pricing and lower fees, but you won’t know until you compare your options from several lenders.

Will refinancing hurt my credit?

There is usually a small temporary dip (2–5 points) from the hard inquiry on your credit and the addition of a new credit line.

Should I wait to refinance until I have a credit score of 680?

If it lowers the rate/fees meaningfully and the timing is flexible, improving your score may help— it's not always required.

Bottom Line

A 650 credit score is strong enough to refinance through conventional, FHA, and VA programs with many lenders. You may pay slightly higher rates or fees than borrowers with 700+, but you still have access to many refinance opportunities.

Because lenders price 650-credit borrowers very differently, comparing offers is essential to avoid overpaying — especially if you’re considering cash-out or PMI removal.

Action Checklist

☑️ Confirm your credit score

☑️ Identify eligible loan types (Conventional, FHA, VA)

☑️ Determine if cash-out is needed

☑️ Request your Loan Estimate

☑️ Upload your LE to Fincast

☑️ Compare lenders anonymously

☑️ Choose the refinance that maximizes your savings

👉 Ready to see whether your 2026 credit score qualifies you for lower refinance rates and fees? Upload your Loan Estimate to Fincast and let vetted lenders compete anonymously to offer you their best pricing — no spam, no extra credit pulls, just savings.

This article is for educational purposes only and does not constitute personalized financial advice. Mortgage requirements vary by lender and individual circumstances. Consult with a licensed mortgage professional for your specific situation.