Can a Felon Buy a House in Texas?

August 23, 2022

How does your status as a convicted felon impact your life?
 
In many countries, felons lose their voting rights permanently. Under Texas state laws, a criminal cannot vote again until their term, parole, or probation has ended.
 
A criminal record might prevent you from pursuing specific careers or attending certain schools. You might be held up in getting a passport or a driver’s license if you’ve been convicted of a crime. There are other careers you may not be able to pursue at all, such as cosmetology or massage therapy.
 
A person convicted of domestic violence or a felony is prohibited from possessing a firearm for a period of five years after their release from prison.
 
Acquiring a visa to enter certain countries is impossible if you have a felony conviction on your record. Americans need to know that significant criminal cases or convictions of a felony elsewhere in the world might result in the denied entrance to Mexico by the immigration service. Agents at the Canadian border have access to the same databases the FBI uses, so they will likely identify anybody with a criminal record in the United States.
 

Can a Felon Buy a House in Texas?

 
Now, for some good news. Felons buying a home may find the process much more manageable. A rental agreement is a significantly more involved procedure.
 
Your criminal background is one of the major obstacles you must overcome while seeking felony-friendly housing, particularly when shopping for rentals.
 
For the most part, mortgage lenders won’t do a credit check on applicants, so this won’t show up in the application process. Stay confident in your life’s direction and financial security!
 

What is Your Credit Score?

 
Because of your criminal record, your credit might have taken some hits. Your credit rating is a significant factor in determining whether or not a mortgage lender will approve you for a loan.
 
Can you buy a house with a felony? When someone is behind bars, debts at home may pile up quickly. After serving their time, many ex-offenders find themselves unable to regain their financial footing and are forced to declare bankruptcy.
 
Because of these difficulties, their credit rating is usually relatively poor. Offenders also tend to have a spotty employment record. Since their criminal conviction, they have been unable to contribute to society by working.
 
If the down payment on a traditional mortgage is less than 20% of the property’s price, the borrower is typically required to have a credit score of at least 620 and to pay for private mortgage insurance (PMI). Private mortgage insurance (PMI) ensures that, in the event of a borrower’s inability to repay their mortgage, the lender will get compensation equal to the loan’s original value.
 

Would You Benefit From an FHA or USDA Loan?

 
Can a convicted felon own property? The law does not prohibit a convicted criminal from owning property. They can get a mortgage with reasonable terms from the Federal Housing Administration (FHA) or the United States Department of Agriculture (USDA). 
 
When an individual applies for a loan via the FHA or the USDA, their background check will examine their credit history, credit score, current work status, and identification. A borrower’s criminal background is not often regarded when applying for a mortgage via the United States Department of Agriculture (USDA) or the Federal Housing Administration (FHA).
 
Can a felon get an FHA loan? Even if a person has a felony conviction on their record, they may still obtain a loan through the FHA. People with criminal records and less than stellar credit histories are often eligible for FHA loans. Additionally, a felony conviction must have happened at least ten years before for an FHA loan application to be considered.
 
To qualify for an FHA loan, a potential borrower must meet specific minimum standards, such as having been gainfully employed for the past two years, having a credit score of at least 580, making a down payment equal to 3.5% of the home’s purchase price, and not having filed for bankruptcy or experienced a foreclosure within the past three years.
 
No down payment is needed for a felon to meet the USDA loan requirements to buy a house. For non-veterans in the United States, this is the sole option for getting a mortgage with no down payment required.
 
In addition, the interest rates for USDA loans are often lower than those on conventional mortgages. The only catch is that you have to buy in a rural area that has received USDA approval.
 
Proof of work for the last two years, a credit score of 620 or above, no bankruptcies within the last three years, no outstanding federal debt (including restitution), and a thorough background check are all necessary for a USDA loan.
 

What Was the Nature of Your Crime?

 
You will be subject to the restrictions associated with your conviction or registration as a sexual offender or methamphetamine manufacturer. It’s in your best interest to be completely forthright with your real estate agent about your history to work together to choose the best course of action. Talk to a criminal defense attorney to find out whether expungement is a viable option for clearing your name.
 

Final Thoughts

 
Formerly imprisoned individuals can turn their lives around after being found guilty of a crime. They can complete their schooling, get lucrative careers, and have a proper home that is more than “housing for felons.”
 
Let’s imagine that you’ve moved beyond your past, created a new life for yourself, and are now prepared for purchasing a home. Obtaining a mortgage entails filling out a loan application form.
 
Can a prospective lender see your criminal history? Can that record be used to reject you for a mortgage loan? Does having a felony affect buying a house? A prospective borrower’s criminal record will be revealed only if a bank or other lender does a background check on them. Different businesses have different financing procedures for those with criminal histories. It is not illegal to refuse loans to individuals for that reason, but it is unlawful to refuse loans to persons based on their gender, religion, race, or other protected status.
 
Not all lenders do criminal background checks. Therefore, it could be advisable to refrain from inquiring whether they do. It could only cause mistrust.
 
However, you’ll have to provide details about your past job and residence. This would show up in your responses if you spent some time in jail or prison. Potential lenders will also review your credit report. Be truthful about your goals moving forward with both your lender and your real estate agent.
 
With a stable career, improved and good credit, and a positive attitude, you will be well on your way to owning a beautiful home in Texas.

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