home loan rates for 650 credit score: a beginner’s guide to your mortgage options

What a 650 score means

With a 650 credit score, you’re near-prime: lenders may approve you, but rates and fees run higher than for excellent credit. Strong income, steady employment, and a solid down payment can help.

Typical rate ranges and loan types

Conventional loans at 650 often run 0.5–1.5 points above top-tier. FHA can compete due to flexible rules, though insurance adds cost. Buying discount points can help if you’ll keep the loan.

How to qualify and reduce costs

• Shop 3–5 lenders and compare APR.
• Check credit unions and local banks.
• Consider FHA or VA (if eligible).
• Lift score toward 680: lower card balances, fix errors.

Quick example

If top-tier rates are near 6.5%, a 650 borrower might see about 7.25–8.25% depending on loan-to-value and points. On $100,000, that gap can add roughly $40–$70 per month, so shopping matters.