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Best Refinance Lenders for Low Equity (2026)
Options for homeowners with less than 20% equity, including programs that reduce or eliminate PMI requirements.
Top Lenders for This Situation
Rocket Mortgage
Best for: Online experience
Min. credit score
580
Pros
- +Streamlined online process with fast pre-approval
- +Wide range of loan products including jumbo
- +Highly rated mobile app and customer support
Cons
- -Origination fees may be higher than some competitors
- -No in-person branches for face-to-face meetings
- -Limited home equity loan options
Better
Best for: Low fees
Min. credit score
620
Pros
- +No origination fees or lender commissions
- +Transparent pricing with real-time rate quotes
- +Fast closing timeline in eligible markets
Cons
- -No VA loans
- -Limited physical locations for in-person support
- -Customer service can be inconsistent during high volume
LendingTree
Best for: Comparing multiple offers
Min. credit score
580
Pros
- +Receive up to 5 offers from competing lenders
- +Wide range of loan types and lender partners
- +Helps borrowers with lower credit scores find options
Cons
- -Not a direct lender (marketplace model)
- -May receive marketing calls from multiple lenders
- -Rates shown are estimates until lender verification
SoFi
Best for: High-balance loans
Min. credit score
600
Pros
- +No origination, application, or appraisal fees
- +Competitive rates for well-qualified borrowers
- +Unemployment forbearance program for members
Cons
- -No FHA, VA, or USDA loans
- -Higher minimum credit score than some competitors
- -Limited loan product variety
Guaranteed Rate
Best for: Wide loan selection
Min. credit score
620
Pros
- +Extensive loan product menu including niche options
- +Both digital and in-person support available
- +Competitive rates with rate lock flexibility
Cons
- -Origination fees vary by market and loan type
- -Online reviews cite occasional processing delays
- -Not available in all states for all products
loanDepot
Best for: Repeat customers
Min. credit score
620
Pros
- +Lifetime guarantee waives lender fees on future refinances
- +Available nationwide with local loan officers
- +Solid digital application experience
Cons
- -Higher rates reported compared to some online lenders
- -Customer service ratings have fluctuated
- -No USDA loans
PennyMac
Best for: Existing PennyMac borrowers
Min. credit score
620
Pros
- +Simple refinance process for current PennyMac customers
- +Competitive rates on conforming and government loans
- +No in-person visit required
Cons
- -Limited branch locations
- -Less competitive for jumbo or non-conforming loans
- -Online tools are functional but not best-in-class
Chase
Best for: Existing Chase customers
Min. credit score
620
Pros
- +Rate discounts for existing Chase banking customers
- +Nationwide branch network for in-person support
- +Strong reputation and financial stability
Cons
- -Less competitive rates without relationship discounts
- -Approval process can be slower than online-only lenders
- -No USDA loans
Wells Fargo
Best for: In-person service
Min. credit score
620
Pros
- +Large branch network for face-to-face support
- +Closing cost assistance programs available
- +Wide range of conventional and government loan products
Cons
- -Online application experience lags behind digital-first lenders
- -Past regulatory issues may concern some borrowers
- -Rates may not be the most competitive for all profiles
Relevant Loan Types
See your numbers
Use real Federal Reserve data to calculate your potential refinance savings for this scenario.
Try the CalculatorFrequently Asked Questions
Can I refinance with less than 20% equity?
Yes. Conventional refinances are available with as little as 3% to 5% equity (though you will pay PMI). FHA allows refinancing with 2.25% equity. VA loans have no equity minimum for eligible veterans.
How do I avoid PMI when refinancing with low equity?
VA loans never require PMI. For conventional loans, you can use lender-paid PMI (higher rate, no monthly PMI charge) or wait until you reach 20% equity. FHA loans require mortgage insurance regardless.
What if my home has decreased in value?
If you owe more than your home is worth (underwater), options are limited. VA IRRRL does not require an appraisal, so it may work. Some lenders offer high-LTV refinance programs for borrowers in good standing.
Will low equity affect my interest rate?
Yes. Lenders charge higher rates for higher LTV ratios because they carry more risk. The difference can be 0.125% to 0.5% compared to a borrower with 20% or more equity.
Should I wait to build more equity before refinancing?
It depends on how much you can save. If current rates are significantly lower than your existing rate, refinancing now - even with PMI - may save more than waiting. Use our calculator to compare scenarios.
This page is for educational purposes only and does not constitute financial advice. Wirly is not a lender or mortgage broker. Individual rates, terms, and eligibility vary by lender and borrower profile. Consult a licensed mortgage professional for personalized guidance.