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Can i refinance with less than 20% equity? What kind of FICO would I need?

by sethcollins445 from Macungie, Pennsylvania. Aug 12th 2015 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

Sure, you can refinance with less than 20% equity. The amount of equity needed will depend on the loan type chosen, if you want to take any cash out, and a few other factors. Contact a local mortgage broker in your area for assistance. For homes in MN, WI, and SD, visit me at www.Minneapolis-Mortgage.net

Aug 12th 2015
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Yes you can and even if you're underwater in some cases. Fico needed is 580+

Aug 12th 2015
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

More info would be required, but if your talking about a single family home which is your primary residence, then you can refi with as little as 2.25% equity.. As far as fico scores, if your 620 or above, you can go FHA, and for conventional with less than 20% equity, you would need 660 or above.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Aug 12th 2015
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Mark Hemingway (SFSLend)
#1 ranked lender in Colorado - 534 contributions

You can refinance with only 5% equity in most situations. But you need to contact a mortgage broker or lender that is licensed in your state to go over your options. You will have mortgage insurance so depending on your credit score will determine what your options are and what payments will look like,.

Aug 12th 2015
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Paul Klaas (paul@paequity.com)
#22 ranked lender in Pennsylvania - 9 contributions

Hi,Great question. YES is the answer. You can refinance your mortgage and even combine mortgages. So factors that will effect the minimum FICO score requirements:Are you combining mortgages that were closed on at the SAME time or did one come sometime after the closing on the 1st mortgage.Are you just doing a rate and term refinance? Meaning, are you just refinancing the 1st mortgage with nothing else involved such as paying off credit cards or even taking cash out?How much equity is in the house? Meaning if the home is worth $100,000 and you currently owe say $60,000 then you are at what they call a 60% LTV (Loan to Value). Basically what this comes down to is what value the appraisal comes in at should an appraisal be required.Simply keep in mind that the higher the risk on the loan (high LTV's like 90%, 95% etc.,) or taking cash out, paying off credit cards, debt ratio can all affect the FICO requirements. As a Pennsylvania Broker like myself, I can offer high LTV loans with no PMI (private mortgage insurance). I weight out all the options, based on your goals, and we discuss what makes sense and what doesn't. There are many options available such as Fannie Mae and Freddie Mac loans, VA loans (for our great people in armed services) FHA loans, etc. Those are the most common. If you want some more specific information pertaining to your situation feel free to call me or text. I can be reached at 412.559.4030 anytime. I can simply run numbers while your on the phone without you obligating yourself or spending any type of upfront fees. I can explain the process of what to watch out for and based on some of your answers to my questions help recommend something to you even if you decide not to ultimately use my services....with NO fee. The good people on this website are here to help. Good things always come back around. I wish you luck. Let me know if I can help any further. Thanks Seth for the question......Paul (Pittsburgh, PA)

Aug 12th 2015
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Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,106 contributions

Yes you can, but it depends on what type of loan program your refinancing out of and into and if the property is owner occupied, 2nd home or an investment property. Many factors go into qualifying for a home loan. The minimum credit score needed will depend on the type of loan program. It would be best to speak with a local loan officer or two and find out what option is best for you. Best wishes, Sean

Aug 16th 2015
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