3: Lenders Say: Credit Score Below 650? Still Qualify for Your Dream Home—Heres How!

Sun, 03 May 2026 19:03:38 +0000

**3: Lenders Say: Credit Score Below 650? Still Qualify for Your Dream Home—Heres How!** When homebuyers see “credit score below 650,” many assume their dream home is out of reach. But recent shifts in lending practices—and growing awareness of alternative paths—mean this threshold is no longer a hard stop. Multiple lenders now report that credit scores below 650 can still qualify buyers for mortgages—especially with the right strategy and preparation. This shift reflects broader economic realities and evolving risk assessments in home financing. **Why Credit Scores Below 650 Still Matter—But Not Stop You** In the U.S., mortgage underwriting has traditionally relied on FICO scores above 620, but evolving market data and rising housing demand have prompted lenders to reassess their criteria. A credit score under 650 now tends to result in slightly higher down payments or mortgage insurance rather than outright denial. This recalibration reflects a growing recognition that total debt, income stability, and employment history play critical roles in mortgage eligibility—especially in tight markets.