Can You Really Buy a Home with Bad Credit in 2025?
Yes—you can. It won’t always be easy, but plenty of Augusta buyers are still closing deals with less-than-perfect credit. The key is knowing your options, working with the right professionals, and understanding how lenders evaluate your full financial picture—not just a number.
What Is Considered “Bad Credit”?
In mortgage terms, anything below 620 is typically considered subprime—but that doesn’t mean you’re shut out.
Here’s a quick credit score breakdown:
| Score Range | Rating | Mortgage Possibility |
|---|---|---|
| 750+ | Excellent | Best rates, all options |
| 700–749 | Good | Most loan types available |
| 620–699 | Fair | Standard FHA/VA approval |
| 580–619 | Poor | Limited options, higher rates |
| Below 580 | Very Poor | Case-by-case FHA only or manual underwriting |
Loan Options for Buyers with Bad Credit
🏡 FHA Loans
- Minimum score: 580 (with 3.5% down)
- Backed by the government = flexible
- Available to first-time and repeat buyers
🏡 VA Loans
- No minimum score (though most lenders want 580–620)
- $0 down
- For veterans, service members, and some spouses
🏡 USDA Loans
- Available in qualifying rural areas (yes—parts of Augusta qualify)
- No down payment
- Typically 640+ preferred, but lower scores may still be eligible with manual underwriting
🏡 In-House or Portfolio Loans
- Offered by local credit unions or smaller banks
- May have more flexible credit requirements
- Higher interest, but an option if others say no
How to Boost Your Approval Odds
Check for Errors
Pull all three credit reports (Equifax, Experian, TransUnion) and correct inaccuracies.
Pay Down Debt
Lower your credit utilization to under 30%. This alone can bump your score fast.
Don’t Open New Accounts
Lenders prefer a stable financial profile before closing.
Get a Co-Signer or Co-Borrower
If a spouse or family member has better credit, applying together may help.
Save a Bigger Down Payment
More cash upfront = lower risk for lenders.
Work with a Local Realtor + Lender Team
Some local lenders in Augusta have more flexibility than national banks. Your agent can connect you to the right pros.
Bad Credit Doesn’t Mean No Options—It Just Means Different Ones
Plenty of Augusta buyers start with low scores but still buy within a year or less—especially when working with the right plan and support system. Don’t count yourself out before exploring your real options.
Ready to See What You Qualify For?
Let’s have a no-pressure, private conversation. I’ll connect you with a lender who works with real people—not just perfect scores.