Purchasing your own home after renting can be exciting but comes with several questions to ask your lender. If you’re wondering, “Can I get an FHA loan with an eviction on my record?” Champions Mortgage Team has your answer. We’re a trusted mortgage broker in Sugar Land, TX, and are here to explain everything you need to know about securing an FHA loan after eviction.
FHA Loans and Their Guidelines
Offered and insured by the Federal Housing Administration, FHA loans make it easier for certain buyers to purchase their first home. FHA loan eligibility tends to be less restrictive than conventional loans and, therefore, tends to serve first-time home buyers as well as people with lower credit scores.
Some of the biggest benefits of an FHA home loan include:
- Minimum down payments as low as 3.5%
- Flexible credit score requirements
- Assumable for future buyers
As long as you can meet basic FHA loan guidelines, you can secure the mortgage for your first home.
Eviction and FHA Loans
“Can I get an FHA loan with an eviction on my record?” A previous eviction won’t directly prevent you from securing a mortgage with a government-backed loan; however, it can make the loan approval process slightly trickier. Evictions can affect your credit, which lenders check before approving someone for a home loan.
If you have low credit to begin with and then face an eviction, it can be difficult to build your credit score back up. FHA loans typically allow for a minimum credit score of 580, so monitor yours to see if it will be a hindrance to your loan application. Lenders may work with you even if you have a lower credit score by offering loan modifications.
Factors Lenders Consider When an Eviction Appears on a Loan Application
“How can I get an FHA loan with an eviction in my past?” Seeing this history on your loan application can raise some alarms, but lenders will look deeper to see whether it’s truly representative of you being a trustworthy borrower. Check out some of the top factors they consider upon seeing this in your history.
When It Happened
If you’re 30 years old when you apply for an FHA loan and were evicted as a 23-year-old renter, lenders shouldn’t hold it against you, given the amount of time that has passed. However, a fairly recent eviction will raise some concerns that you might need to address.
The Reasons for the Eviction
Provide your lender with a letter of explanation sharing the specific circumstances that led to your eviction. Hardships like job loss or health emergencies will add more context to the situation rather than you having a steady income but failing to make rent payments.
Your Payment History Since the Eviction
An eviction can be a wake-up call for renters to become more responsible for their payments and make their rent each month. If you stay up-to-date on all of your rent payments since your conviction, lenders will have more confidence in you as a borrower and increase the chances of a favorable outcome from your loan application.
Secure a Home Loan With Help From Champions Mortgage
“Can I get an FHA loan with an eviction on my record?” What are the pros and cons of conventional vs. jumbo loans? For answers to these questions and more, turn to our experts at Champions Mortgage Team.
We’re your local lending specialists with years of experience. Securing a home loan doesn’t have to be difficult with our team on your side. To learn more about securing an FHA loan, contact us at (281) 727-2500.
