Can a Felon Get a Mortgage?

Yes, a felon can get a mortgage—but it’s not always easy. Life after a felony conviction comes with enough challenges already, and buying a home might feel like a far-off dream. But here’s the real talk: while it’s tougher, it’s not impossible. Whether you’ve just gotten back on your feet or you've been working toward a second shot at stability for years, there are lenders willing to work with you. That said, there are some bumps to expect along the way.

This blog breaks it all down for you—what to expect, where the real issues pop up, and how to give yourself the best chance of owning a home. Let’s get into it.

How a Felony Impacts Mortgage Approval

Let’s keep it real: lenders don’t have a simple “felon = denied” rule. Meeting all requirements in the loan program along with maintaining sound financial health becomes the decisive factor for loan approval. Loan qualifications evaluate your credit score together with income status while also considering employment record and down payment amount.

Offenses classified as felonies will create significant problems when they cause problems with your ability to work or result in poor credit or restricted loan availability. The nature of the offense along with time passed since the offense are elements that some lenders seek to know.

Key Factors Lenders Look At

• Credit Score: Most mortgage programs want to see a credit score of at least 620–640, but the higher the better.

• Income and Job History: Stable income and at least two years of work history are usually expected.

• Debt-to-Income Ratio (DTI): Lenders want to see that you’re not drowning in debt. Most aim for a DTI under 43%.

• Down Payment: The more you can put down, the better your chances.

• Loan Type: Some programs are stricter than others when it comes to criminal records.

Which Home Loans Are Available to Felons?

Here’s where things get interesting. Some home loan programs are more flexible than others. Here’s a quick breakdown:

FHA Loans

FHA loans demonstrate the highest tolerance toward applicants who have criminal records in their past. These programs exist for new homebuyers with imperfect credit scores and for initial property purchases.

• Minimum Credit Score: 580 (with 3.5% down) or 500 (with 10% down)

• Waiting Period: No hard rule for felonies, but you may face extra scrutiny if the conviction was recent or related to fraud.

VA Loans

Service members including vets possess a reliable funding source through VA loans. Veterans Affairs does not enforce a one-size-fits-all policy against applicants with felonies yet lenders maintain the authority to judge these cases independently.

• Military Service Required

• No Down Payment Needed

• No Private Mortgage Insurance (PMI)

The problem arises when your convictions stem from either dishonorable discharge or fraud-related offenses.

USDA Loans

These are for rural or suburban buyers with low-to-moderate income. Like FHA and VA loans, the USDA doesn’t automatically deny people with criminal records, but the lender might.

• Income Limits Apply

• Property Must Be in Eligible Area

• Convictions Involving Government Programs May Disqualify You

Conventional Loans

These are the trickiest for people with records. Conventional loans come with stricter underwriting and higher credit score requirements. If you’ve rebuilt your credit and can show solid finances, it’s possible—but you’ll probably need a larger down payment.

Does the Type of Felony Matter?

Absolutely. Not all felonies are seen the same. Lenders may be more cautious with convictions involving:

• Financial crimes like fraud, forgery, or identity theft

• Violent crimes or anything that raises concerns about safety or character

• Drug trafficking (especially if it led to a lengthy prison sentence)

If the conviction is older, and you’ve rebuilt your life, some lenders will give you a fair shot—especially if you can back it up with paperwork, letters of recommendation, and clean records since.

Tips to Improve Your Chances of Getting Approved

Here’s the playbook to improve your odds:

1. Rebuild Your Credit

Get a secured credit card, make payments on time, and check your credit report for errors. This takes time, but it works.

2. Save for a Bigger Down Payment

The more you can contribute, the less risk for the lender. Aim for at least 10–20% if you’re going conventional.

3. Stay Employed and Document Everything

A strong, stable job is a big green flag for lenders. If your felony impacted your job history, be upfront about it and show how you’ve turned things around.

4. Write a Letter of Explanation

Sometimes honesty really is the best policy. If the lender allows it, include a personal statement about your past, how you’ve changed, and what homeownership means to you now.

5. Work with a Loan Officer Who Gets It

This one’s big. Some lenders just aren’t flexible. Look for someone local, familiar with second-chance borrowers, and who knows the ins and outs of different loan programs.

Will a Background Check Stop You from Getting a Mortgage?

Most lenders run a background check, especially if you’re applying for government-backed loans. The results won’t always kill your chances, but they can slow things down or lead to rejection if your conviction is recent or related to mortgage fraud.

If you’re worried, talk to a loan officer before applying. They can tell you what to expect and help you prep the right documents.

Getting Pre-Approved with a Felony on Record

Pre-approval is a smart first step. It gives you a clear idea of what you can afford—and shows sellers you’re serious.

But heads up: pre-approval isn’t guaranteed approval. If your lender doesn’t know about your conviction upfront, it could come back to bite you later. Transparency goes a long way, especially if you’re working with a team that values people first.

Final Thoughts

So—can a felon get a mortgage? Yes. But it takes patience, strategy, and the right team. Your past might shape your path, but it doesn’t have to control your future. With the right steps and the right lender, homeownership is still within reach.

If you’re in the Rio Grande Valley and looking to start fresh, we’d be honored to help.

Ready to Buy a Home in the RGV?

At Movement Mortgage RGV, we know everyone’s story is different—and we believe in second chances. Whether you’re rebuilding your life, just starting over, or finally ready to put down roots, we’re here to walk with you every step of the way.

We’re proud to be one of the best mortgage lenders in the Rio Grande Valley, offering flexible programs and honest guidance without judgment. Our mission has always been about helping real people, not just pushing paperwork.

Let’s talk. Schedule a consultation and find out what’s possible for you, no matter your past.