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Mortgage Refinance Requirements in California

Refinancing replaces your current mortgage with a new one — to lower your rate, change your term, drop mortgage insurance, or tap equity. Here’s what it takes.

MBReviewed by Mike Basti, Mortgage Broker & Founder · NMLS #377740
Quick Answer

To refinance you generally need enough equity for the loan type, a credit score usually 620+, verifiable income, a workable debt-to-income ratio, and a home that appraises to support the loan.

Core requirements

Every refinance is a new loan, so lenders re-verify income, credit, and DTI, and usually order an appraisal. The equity you need depends on the type: a rate-and-term refinance can go to higher LTV, while cash-out caps near 80%.

Program flexibility

Options exist across the credit spectrum — conventional, FHA (including streamlines), and VA (IRRRL). Self-employed borrowers can refinance with bank-statement programs. We match your goal to the right program.

RequirementTypical
Credit~620+ (varies by program)
EquityDepends on refi type
IncomeVerifiable; DTI reviewed
AppraisalUsually required

Frequently asked questions

How much equity do I need to refinance?

It depends on the type — rate-and-term can allow higher LTV, while cash-out typically caps near 80%. Streamline options may skip the appraisal.

Can I refinance with average credit?

Often yes. FHA and other programs are flexible; better credit simply unlocks better pricing.

Do I always need an appraisal?

Usually, but some streamline refinances (FHA/VA) may waive it. We’ll tell you which applies.

Save Financial is a California-licensed mortgage brokerage (NMLS #377740, DRE #01875766). Figures are illustrative for 2026 and not an offer of credit.

Wondering if refinancing makes sense for you?

Talk to a licensed California mortgage broker for a free, no-obligation consultation.