Reader Question: Can I Get A Mortgage With A 650 Credit Score?

Today’s reader question is an interesting one:

Is it possible to get a mortgage loan when you have a 650 FICO score?

I know that it’s possible to get a mortgage with credit in this range, but since I’ve never actually done it myself, I decided to consult my mortgage guy, Glen.

Glen told me that it’s definitely possible to get a loan for a home with credit in this range. In fact, he says that people with credit in this range can get approvals MOST of the time, especially if they are a candidate for an FHA loan.

While that’s the case, let’s be clear. A credit score of 650 is not a good credit score and will be classified by most banks as being in the ‘fair’ range. This means that you’ll end up paying extra interest and probably extra fees at the time of closing.

Update: My mortgage guy Glen confirms that it’s STILL possible to get a mortgage with a score in this range. In fact, Glen says it’s possible to get a mortgage in the 580 range if you are willing to put down 10%.

Should You Take Out A Mortgage With A Score In This Range?

I personally wouldn’t take out a mortgage with a score in this range. I would do everything in my power to improve my score before I took out the loan. Any additional percentage points in interest will cost you literally tens of thousands of dollars and unless you have tens of thousands of dollars to throw away, I really don’t think it’s a good idea.

If you want to learn more about operating with a credit score that’s in this range, you should visit Doctor 650, a site dedicated entirely to the 650 credit score. Click here to check it out. You’ll be able to learn about what makes you end up with a score in this range and more importantly, how to fix the situation.

Please take my advice, don’t sit on a fair credit score. It will cost you an insane amount of money in your lifetime. Don’t do it!!

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