Can You Buy a House with an Eviction?
So, you are ready to start house hunting, or you have already found the perfect new home. Still, you cannot kick the thought of that eviction notice you received from your previous landlord. Is it going to stop you from buying a home? Will it stay on your record forever?
Let's find out.
Does an Eviction Effect Buying a House?
Having an eviction doesn't always stop a person from buying a house, but it can hinder the home buying process in various ways. Eviction can:
- Hurt your credit score
- Prevent you from getting pre-approved for mortgage loans
- Impact the amount you must pay for your down payment or mortgage
- Increase the mortgage interest rate you qualify for
- Make mortgage lenders view you as a high-risk buyer
Can I Get an FHA Loan with an Eviction?
Yes. The Federal Housing Administration (FHA) is a government-funded organization that provides the public with mortgage loans from approved lenders. An eviction may impact your approval since the FHA looks at your payment history, credit score, and credit report.
To receive an FHA loan, you must:
- Have a 580 or better credit score with 3.5% down
- Have a 500-credit score with 10% down
- Show proof of 2 years of employment and income
- A debt-to-income ratio under 43%
You may get a denial if:
- You have a history of late bills or rent payments (more than one within the past 12 months)
- You have no credit history
- You have a foreclosure, and you have not reached the 36-month waiting period
- You filed for bankruptcy, and you have not reached the 24-month waiting period
- You have unpaid Federal debt and are not on a payment plan
Does an Eviction Go on Your Record?
Yes. The eviction would go on your record if the landlord won a civil judgment against the tenant in court. In other words, it will be made available through the public record if they terminate the lease, evict you, and win their case. Evictions will also appear on tenant screening reports and background checks.
Does a Rental Eviction Go on Your Credit Report?
No, evictions do not specifically appear on credit reports. But unpaid debt and collections from a collection agency do (which can lower your credit score by 100 points or more).
How Long Does a Rental Eviction Stay on Your Record?
An eviction remains on the public record for seven years, and then they delete it.
When Does an Eviction Go on Your Record?
An eviction only goes on the public record if your landlord obtains a civil judgment from the court.
How To Check If You Have a Rent Eviction
You have several options available to you:
- Request a free credit report from a credit reporting company (Experian, Equifax, TransUnion)
- Get a complete rental history background check
- Search through local court cases online
- Visit the courthouse in person and ask to see your record
How To Get an Eviction Removed
Fortunately, removing an eviction is quite simple. But you will need to cover all your bases to get a clean slate. So here are a few things you can do.
- Petition The Court. If you can prove you abided by your lease agreement or the landlord made a false claim, ask the county court if they will expunge or erase the eviction. All you will need to do is file a petition and pay a filing fee.
- Pay All Outstanding Debts. Do you have unpaid utility bills or rent payments? Get them paid as soon as possible to keep the peace.
- Ask For Collections Removal. Make sure to request the removal of all collections once you pay them (whether from your landlord or the collection agency). You may still see the activity on your credit report even after you pay your dues.
- Request Eviction Removal from Tenant-Screening Reports. Ask your landlord if they will remove the eviction once you pay the total amount you owe.
- File Complaints with Credit Bureaus (if needed). If you find inaccurate data on your credit report, you will want to contact the credit bureau you are working with to correct them.
Do Evictions Carry from State to State?
Local laws on evictions may vary, depending on what state you are in. However, evictions will usually show up no matter where you go.
What is Considered Bad Rental History?
Bad rental history includes:
- Violating the rental property's lease terms
- Poor credit history
- Late or unpaid payments
- Bounced checks
- Damages to the property
- Bad references
- Previous evictions
- Not vacating the property within 60 days or the required window of time
How to Get a Home with an Eviction?
Here are a few other things to do to find a home when you are dealing with a prior eviction:
- Make a solid first impression on your mortgage lender by being polite, dressing professionally, and coming prepared with relevant documents
- Ensure that you have paid all your debt
- Get high-quality references who will vouch for you
- Offer a larger down payment to show good faith
- Start rebuilding your credit
- Partner with experienced real estate agents who can help you navigate the process
If all your efforts fail, you can search for eviction-friendly apartments until your status improves enough to buy a home.
Do You Know Home Insurance is Required at Closing?
Before finalizing a mortgage, lenders will require you to purchase a home insurance policy. The best time to shop around is usually three weeks to a month in advance.
Are you looking for an affordable policy with all the coverage you need? Get a free home insurance quote today.
At your service,