How Much of a Home Loan Can I Get With a 650 Credit Score?

The better your credit score, the easier it is to get a lower interest rate and a bigger loan from a mortgage lender.

With a 650 credit score, you should qualify for a home loan, but you’ll fall well short of the cheapest possible mortgage rate and the highest available principal balance. Here’s what you should know about the loans you’re likely to get.

Is 650 a Good Credit Score?

Mortgage lenders primarily use three scores to assess your creditworthiness: FICO Scores 2, 4, and 5. All of them use a scale of 300 to 850, which breaks down into the following ranges:

• 300 to 579: Poor
• 580 to 669: Fair
• 670 to 739: Good
• 740 to 799: Very Good
• 800 to 850: Exceptional

A 650 credit score is on the upper end of the “fair” range, but it’s pretty far from optimal. The average credit score for people with a home loan in 2020 was 753. 

Still, 650 is close enough to the lower end of the “good” range that most lenders will give you a shot, especially if you have a high income or down payment. Many types of home loans have a minimum credit score requirement between 580 and 640.

A 650 credit score puts you just above the higher credit requirements. So you can qualify in many cases, but your interest rate might be more expensive than you’d like.

Options Available for Someone With a 650 Credit Score

A 650 credit score usually prevents you from receiving the best possible mortgage terms, but you should still be able to at least qualify for many of the most popular types of home loans. We have a step by step guide for home buyers at How to Qualify for a Home Loan for a First-Time Buyer.

And here’s an overview of some of the options available to you.

Conventional Home Loans

Conventional home loans usually require a minimum credit score of 620. That means that you should be able to qualify for one with a score of 650, but it might be a close call, depending on your other qualifications.

To increase your odds of s