520 Credit Score Refinance
A 520 keeps standard refinancing out of reach, but a streamline can still lower the rate on an FHA or VA loan.
A 520 credit score is below the 620 needed for a standard or cash-out refinance. The realistic option is a streamline. If you already hold an FHA or VA loan, FHA Streamline and VA IRRRL can reduce your payment without re-checking credit, making them the practical refinance route at 520.
What 520 Can and Cannot Do
A 520 cannot refinance into a conventional loan or pull cash out, since both require the 620 minimum and a full credit review. That door stays closed until the score rises.
It can, however, benefit from a streamline. These programs target existing FHA and VA borrowers and lean on recent mortgage payment history rather than a score pull, so a clean 520 file can still qualify to lower a rate.
| Refinance Type | Available at a 520 Score? |
|---|---|
| Conventional rate-term | No (needs 620) |
| Cash-out | No |
| FHA Streamline | Often yes |
| VA IRRRL | Often yes with a VA loan |
What a 520 score changes for Refinance
Credit scores work in bands rather than single points, so the score either side of yours is what decides whether the terms move. Here is what the nearest bands do to a refinance in Florida, and what the same 520 reaches on other programs today.
Drop to 510: Streamline may still work. See 510 with Refinance
Reach 530: Streamline may still work. See 530 with Refinance
If you are close to the band above, it is usually worth asking a lender what it would take to get there before you lock anything in. Paying down a revolving balance is the fastest lever most borrowers have, and it can move a score within one billing cycle.
One thing worth knowing before you read too much into a number: lenders do not use the score you see on a free credit app. They pull all three bureaus and work from the middle score, and on a joint application they use the lower borrower’s middle score. Ask which score a lender is working from before you assume you sit in a particular band.
What else a 520 score reaches
FHA Loan at 520: Possible with 10% down.
VA Loan at 520: Possible with the right lender.
Conventional Loan at 520: Not yet — build toward 620.
Jumbo Loan at 520: Not available — focus on credit.
520 Credit Score Refinance — FAQ
Through a streamline, often yes. Standard and cash-out refinances need 620, but FHA Streamline and VA IRRRL usually skip the score check, so a 520 with on-time recent payments may still lower its rate.
No. Cash-out refinancing requires at least 620 and a full credit review. A 520 is limited to streamline programs, which lower the rate but do not let you take equity out.
Verify the details for your own situation against these government and agency sources: HUD FHA loan program and HUD Handbook 4000.1 (FHA rules).
A Refinance With a 520 Score?
Get matched to the right Florida loan for your score · Licensed FL mortgage broker NMLS# 1859012
Rates are illustrative only. APR and payments vary by credit score, loan amount, and market conditions. Subject to credit approval. Not a commitment to lend. NMLS# 1859012. Equal Housing Lender.