The score alone should not prevent you from getting financing, but depending on the type of loan you obtain, and its loan-to-value (LTV), your 650 score may have an adverse impact on the rate for which you're eligible.
Consult a local mortgage professional for a pre-approval and this will help you best determine your course of action.
I specialize in working with first time home buyers and clients in need of a better understanding of their credit situation. I would be happy to help you at your earliest convenience. I am a full time Realtor so I am also available on nights and weekends.
John Harris and Associates
Keller Williams Northland Partners
Century 21 Diversified
After that you'll be ready to start looking at homes!
You can go online to get pre-approved or let me know & I'd be happy to refer you to a few lenders that would be able to help you out.
And I can help you with any home that you may be interested in anywhere in the area, from foreclosures to new construction and everything in between!
Hope to hear from you soon!
Century 21 All-Pro
I would start by contacting the LOCAL HUD counselor. Sit down with that person and talk to them. They will be able to refer you to a good local lender if you are qualified to buy. http://www.makinghomeaffordable.gov