Can I Get an FHA Loan with an Eviction?
Evictions can significantly impact your ability to secure housing, including obtaining an FHA loan. An eviction is a legal proceeding where a landlord forces a tenant to leave a rental property due to unpaid rent or lease violations. It can damage your rental history and credit score, making it more challenging to qualify for an FHA loan.
However, it’s important to know that not all evictions are created equal. Some circumstances may make it easier to obtain FHA financing despite an eviction on your record.
Understanding FHA Loan Requirements
FHA loans are government-backed mortgages insured by the Federal Housing Administration (FHA). They are designed to help first-time homebuyers and borrowers with lower credit scores or limited savings for a down payment. FHA loans have more lenient credit and income requirements than conventional loans, making them an attractive option for borrowers with less-than-perfect credit.
However, FHA loans still require borrowers to meet certain eligibility criteria, including a clean rental history. Evictions are considered a negative factor in FHA underwriting, and they can make it more difficult to qualify for a loan. Nonetheless, an eviction does not automatically disqualify you from obtaining an FHA loan.
Types of Evictions
The type of eviction on your record can also impact your ability to get an FHA loan. There are two main types of evictions:
- Unlawful Eviction: This occurs when you are evicted without a valid reason, such as nonpayment of rent or lease violations.
- Lawful Eviction: This occurs when you are evicted for a legitimate reason, such as violating the terms of your lease or engaging in illegal activities.
Unlawful evictions are less likely to affect your ability to obtain an FHA loan, as they can be contested in court. However, lawful evictions are more likely to be considered a negative factor in FHA underwriting.
Expungement and Waiting Periods
If you have an eviction on your record, you may be able to expunge it from your rental history. Expungement is a legal process that removes an eviction from your public record. However, not all evictions can be expunged, and the process can vary depending on the state in which you live.
In addition, FHA has a waiting period for evictions. If you have a recent eviction, you may need to wait a certain amount of time before you can qualify for an FHA loan. The waiting period typically ranges from one to three years, depending on the circumstances of the eviction.
Tips and Expert Advice
If you have an eviction on your record and are considering applying for an FHA loan, there are a few things you can do to improve your chances of approval:
- Get a copy of your eviction record: Obtain a copy of your eviction record from the court where the eviction was filed. This will help you understand the specific reasons for the eviction and whether it was lawful or unlawful.
- Dispute any unlawful evictions: If you believe your eviction was unlawful, you should contact a lawyer to discuss your options for contesting it in court.
- Build a positive rental history: After an eviction, it’s important to establish a positive rental history. This means paying your rent on time, following the terms of your lease, and avoiding any conflicts with your landlord.
- Secure a cosigner: If you have a recent eviction, you may be able to improve your chances of approval by obtaining a cosigner. A cosigner is someone with a good credit history who is willing to share responsibility for the loan.
Frequently Asked Questions
Here are some of the most frequently asked questions about FHA loans and evictions:
- Q: Can I get an FHA loan if I have been evicted?
A: Yes, you may be able to get an FHA loan with an eviction on your record. However, the type of eviction, the reason for the eviction, and the amount of time that has passed since the eviction will all impact your ability to qualify.
- Q: How long do I have to wait after an eviction before I can apply for an FHA loan?
A: The waiting period for evictions typically ranges from one to three years, depending on the circumstances of the eviction.
- Q: Can I expunge an eviction from my record?
A: Not all evictions can be expunged. The process for expunging an eviction varies depending on the state in which you live.
Conclusion
Getting an FHA loan with an eviction on your record can be challenging but not impossible. By understanding the eligibility criteria, the different types of evictions, and the steps you can take to improve your chances of approval, you can increase your chances of obtaining an FHA loan and achieving your homeownership goals.
Are you interested in learning more about FHA loans and how to qualify with an eviction on your record? Contact a reputable mortgage lender today to discuss your options.
