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

Yes, You Can Get a Home Loan With Fair Credit!

A 720 credit score is not required to buy a home (but it will help lower your interest rates). In fact, FHA loans allow approval with credit scores as low as 500, though you’ll need to meet specific requirements. Once your score hits 580, options start to open up significantly. At 650, you’re above that threshold and in a position to qualify for multiple loan types.

Even people with scores in the 550s have been able to refinance under the right conditions. The key is understanding how lenders evaluate the whole picture, not just the number.

Payment History Often Matters More Than Credit Score

When it comes to mortgage approval, your recent payment behavior carries a lot of weight, sometimes even more than your actual credit score. One of the most important criteria is that you have no late mortgage payments in the last 12 months. Even if you’ve had a late payment in the past, some lenders will consider a strong letter of explanation, especially if there were extenuating circumstances like illness or job loss. 

What You Can Qualify For With a 650 Credit Score

Several loan programs are available to borrowers with a 650 credit score, including FHA loans, VA loans, USDA loans, and conventional loans. Let’s take a look at these one at a time. But first, here’s a quick comparison …

Table 1: How Much of a Home Loan Can I Get With a 650 Credit Score? 

	FHA Loan	VA Loan	USDA Loan	Conventional Loan
Minimum Credit Score	580	Typically 620	640–650	620
Down Payment	3.5%	None	None	5% to 20%
Maximum LTV	96.5%	100%	100%	Up to 97%
Loan Amount Cap	~$498,257 (standard); up to $1,149,825 (high-cost areas)	No official cap with full entitlement	No set cap, but income and property restrictions apply	$806,500 (standard); up to $1,200,000 (high-cost areas)
Notes	Mortgage insurance required; less credit-sensitive	No mortgage insurance; for eligible service members	Rural-only; income limits; modest homes only	PMI required if <20% down; more credit-sensitive

FHA Loans

An FHA loan is a type of mortgage that’s insured by the Federal Housing Administration (FHA) and designed to make homeownership more accessible, especially for first-time buyers or those with lower credit scores. FHA loans are less credit-sensitive and highly accessible. The interest rate difference between someone with a 580 and a 720 credit score might be just one-eighth of a percent, small compared to the rate gaps in conventional loans. FHA loans also allow your upfront mortgage insurance premium (usually around $4,000–$5,000) to be rolled into your loan amount. That said, the FHA sets maximum loan amounts based on location.

So to answer your question— How much of a home loan can I get with a 650 credit score?—when it comes to FHA loans, the 2025 limit is around $498,257 in most areas, but it can go up to $1,149,825 in high-cost areas.

VA Loans

VA loans are one of the most affordable ways to buy a home if you’re a veteran or active-duty service member. They don’t require a down payment, and even with a 650 credit score, you’re likely good to go.

And here’s something a lot of people don’t realize: there’s no official loan limit anymore if you have full VA loan benefits. The only time a cap might apply is if you already have a VA loan or used part of your benefit before. But if this is your first time using it (or your previous loan is paid off), you’re wide open. So let’s answer that question with VA loans: How much of a home loan can I get with a 650 credit score? You can borrow as much as a lender is willing to give you without a down payment.

Watch & Learn: How to Get a Home Loan … Even with Bad Credit?

USDA Loans

USDA loans are another great option with no down payment, but your home must be in a USDA-approved rural area, and you must meet household income limits.

There isn’t a set loan amount cap like there is with some other programs, but there is an income cap: Your household income usually has to be below 115% of the median income in your area. That’s how the program stays focused on helping low- to moderate-income families in rural communities.

Now, just because you meet the income requirement doesn’t mean you can borrow any amount. The loan size you qualify for is based on your debt-to-income ratio (DTI), monthly bills, credit, and what you can realistically afford. In other words, they look at your finances to decide how much house you can handle, not just whether you fall under the income limit.

Also worth noting: The home has to be considered modest in size, cost, and features, so USDA loans won’t cover luxury properties, even if they’re technically in a rural area.

So to answer your question directly: How much of a home loan can I get with a 650 credit score? It’s less about how much the house costs and more about how much you earn, how much debt you carry, and where the property is located.

For best results, work with a lender who understands the impact of credit scores on your loan amount, and who can work with your unique needs. Click here for an introduction to a lender in your area.

Conventional Loans

A conventional loan is a mortgage that isn’t backed by a government agency like FHA, VA, or USDA. Instead, it comes from private lenders, such as banks, credit unions, or mortgage companies. These loans typically follows guidelines set by Fannie Mae and Freddie Mac.

Conventional loans offer a lot of flexibility. You can use them for a primary residence, a second home, or even an investment property. You also have the potential to avoid mortgage insurance if you put 20% down, and if you do pay mortgage insurance, you can get it removed once you reach 20% equity.

But they are more credit-sensitive, and this is where having a 720+ credit score is so important. With a 650 credit score, you’re likely to face a higher interest rate than someone with a 720+ score. Your loan approval might also be subject to stricter debt-to-income requirements, and private mortgage insurance (PMI) could be more expensive compared to an FHA loan.

So to answer your question—How much of a home loan can I get with a 650 credit score?—with a conventional loan, your approval amount will depend heavily on your income, existing debts, and how much you can put down. While 650 meets the minimum credit requirement for many lenders, you may qualify for a smaller loan amount or higher monthly payment than you would with an FHA loan. Still, it’s worth comparing side by side, especially if you have strong income or a larger down payment saved up.

Would you like to learn how to improve your credit score in preparation for a conventional home loan? Enroll for free in our credit-improvement program, 7 Steps to a 720 Credit Score.