650 Credit Score? Here’s What Kind of Home Loan You Can Get

A 650 credit score is considered good. It means you’re a low risk to lenders, and you’ll probably be approved for most types of loans and credit cards. Here’s what you can expect if you have a 650 credit score.

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Credit scores are one of the most important factors that mortgage lenders use to decide if you qualify for a loan and what kind of interest rate you will pay. If your credit score is below 580, it’s considered poor, and you may not be able to get a traditional mortgage. A score of 650 is middle of the fair credit range. You may be able to get some types of loans with this credit score, but you’ll likely pay higher interest rates.

Mortgage Types

A credit score of 650 is right on the line between “good” and “fair” credit, and borrowers with a score in this range will usually qualify for most types of loans. let’s take a look at what kind of mortgage products are available to someone with a 650 credit score.

Fixed-rate mortgage

A fixed-rate mortgage has an interest rate that remains the same for the life of the loan. Your monthly payments will be higher with a fixed-rate mortgage, but you won’t have to worry about your payments going up if interest rates rise.

Adjustable-rate mortgage

An adjustable-rate mortgage (ARM) has interest rates that adjust over time. Typically, the starting rate remains fixed for a set number of years, such as three, five, or even as much as 10 years. That initial rate tends to be lower than that of most fixed-rate mortgages.

The index is the benchmark interest rate used to set your ARM’s interest rate at each adjustment period. There are many different indexes used with ARMs, but some of the more common ones include rates on Treasury securities, the Cost of Funds Index (COFI), and the London Interbank Offered Rate (LIBOR).

ARMs offer clients a lower introductory interest rate than fixed-rate mortgages and monthly payments that can change over time, which makes them a good option for homebuyers who plan to stay in their home for only a few years or less.

Interest-only mortgage

An interest-only mortgage is a loan where you make interest payments for a set period of time – usually 5 to 10 years – while the principal balance remains unchanged. After that, your lender will begin to collect principal as well as interest every month until your loan is paid off.

This type of loan can be a good option if you expect your income to increase significantly over the next few years and want to keep your monthly payments low during that time. It can also be a good choice if you plan to sell your home before the end of the interest-only period.

However, there are some risks to consider with an interest-only mortgage. If your income doesn’t increase as much as you expect, you may have trouble making the larger principal and interest payments when they begin. And, if housing prices fall during the interest-only period, you may end up owing more than your home is worth when it’s time to sell.

Jumbo mortgage

A jumbo mortgage is a type of mortgage loan that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Jumbo mortgage loans are designed for homebuyers who are seeking to finance a loan amount that is greater than the limit set by the FHFA for conforming loans.

The limit for conforming loans differs from one area of the country to another. In general, conforming loan limits are higher in areas where housing costs are higher, such as in major metropolitan areas. The limit for a jumbo mortgage loan in Seattle is currently $726,525.

Jumbo mortgage loans come with some added risks for lenders, which is why they typically require a higher credit score and down payment than conforming loans. But for qualified borrowers, jumbo loans can be a good option for financing a high-priced home.

Mortgage Lenders

A 650 credit score is seen as the “borderline” score for good credit by many lending institutions. That means you might be able to qualify for some loans and credit products but not at the best terms or interest rates. If you’re looking for a home loan, you can still get one with a 650 credit score, but you might not get the best terms.

Bank or credit union

If your credit score is in good shape, you should have no trouble finding a lender willing to give you a loan. In fact, you might even be able to get a better interest rate than someone with a lower score.

There are a few reasons for this. First of all, banks and credit unions are more likely to offer better rates to customers who have higher credit scores. This is because they view these borrowers as being less of a risk. Secondly, people with higher credit scores usually have an easier time getting approved for loans in the first place.

So, if you have a 650 credit score, you should be able to get a mortgage from just about any lender. However, you might not get the best possible rate unless you shop around and compare offers from multiple lenders.

Mortgage broker

A mortgage broker is a professional who can help you find the best mortgage for your needs. Brokers work with a variety of lenders to find loans for their clients, and they may also offer other financial services such as insurance and investment advice.

When you work with a broker, you’ll fill out an application and the broker will collect information from you about your finances, employment, and credit history. They will then submit this information to multiple lenders in order to get you the best possible interest rate and terms for your home loan.

Brokers are required to have a license in order to work, and they must follow certain regulations when they are helping you find a loan. Mortgage brokers are typically paid by the lender, but in some cases, they may charge a fee for their services.

Online mortgage lender

If you’re looking for an online mortgage lender, you have many options to consider. Below is a list of some of the best online mortgage lenders, along with tips to help you choose the right one for your needs.

-LoanDepot: Best Overall
-Rocket Mortgage by Quicken Loans: Runner-Up
-SoFi Mortgage: Best for Low Rates
-Guaranteed Rate Mortgage: Best for refinancing
-Caliber Home Loans: Best for customer service

Mortgage Rate Quotes

If you’re looking for a 650 credit score mortgage, you may be wondering what kind of home loan you can get. The good news is that there are plenty of options available to you. In this article, we’ll take a look at some of the best 650 credit score mortgage options that you can choose from.

Rate quotes from multiple lenders

A credit score of 650 is considered fair. With a 650 credit score, you’ll likely qualify for a variety of conventional loans as well as FHA, USDA and VA loans. Lenders will offer you a better interest rate with a higher credit score.

If your score is below 650, you might still be able to qualify for some government-backed loans and other private lenders will offer subprime loans with higher interest rates. You can improve your credit score by paying down your debt, paying your bills on time and maintaining a good credit history.

Good Faith Estimate

As part of the mortgage application process, you’ll receive a Good Faith Estimate (GFE) from your lender. This document provides important information about the estimated costs associated with your home loan.

The GFE contains information about:

– The loan amount
– The interest rate
– Estimated taxes and insurance
– Estimated closing costs

The GFE is an estimate, and the actual costs at closing may be higher or lower than the estimates. Your final costs will be provided in a Truth in Lending disclosure at least three days before your closing.

Mortgage rate lock

A mortgage rate lock is a written agreement between a homebuyer and a lender that guarantees the mortgage interest rate will not increase or decrease for a specified period of time, typically 60 to 120 days. Rate locks are important because they protect homebuyers from rising interest rates during the loan process.

To obtain a rate lock, homebuyers must submit a completed loan application and pay any associated fees. The loan application is then forwarded to an underwriter, who reviews it for approval. Once approved, the underwriter issues a “commitment letter” that includes the approved loan amount and interest rate.

At this point, the lender will offer the homebuyer a rate lock for a specified period of time. If interest rates rise during that time frame, the homebuyer is still guaranteed the locked-in rate. However, if interest rates fall, the homebuyer may miss out on getting a lower rate.


If you’re looking for a mortgage with a credit score of 650, you’re not going to have a lot of options. In fact, you might not have any options.

The most important factor in getting a mortgage is your credit score. Lenders use this number to determine how likely you are to repay your loan. The higher your score, the better your interest rate and terms will be.

A credit score of 650 is considered “fair” by most standards. This means that you’ll probably have difficulty qualifying for a conventional mortgage. You may still be able to get an FHA loan, but your interest rates will be higher and your down payment may need to be larger.

If you’re looking for a home loan with a 650 credit score, your best bet is to work on improving your score before you apply. Paying down debt, maintaining a good credit history, and using credit wisely can all help to raise your score over time.

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