If you have a felony on your record and are wondering if you can still buy a house, you’ve come to the right place. The answer is a resounding yes.
Thankfully, federal and state governments don’t have laws restricting homeownership for the formerly incarcerated — even if you have a felony conviction. Yet those leaving the carceral system face some unique challenges that those without a felony history may not. Can you overcome those challenges? Absolutely.
Here, we dive into the barriers felons face on their journey to homeownership and expert insights to help you get the mortgage you want. Each expert featured has first-hand experience — professionally and/or personally — on the subject of felons and mortgages. You’ll even hear from a felon who’s not just a homeowner but helps other formerly incarcerated persons build the firm financial footing that mortgage lenders want to see.
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Learn more: How to buy a house in 13 steps
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If you don’t know someone with a felony history, you might think that a felon’s life becomes like anyone else’s the moment they step out of prison. Grab a smartphone, rejoin society as a free soul, take charge of your day, and inhale fresh air on demand, right? The truth is much more nuanced and creates barriers to homeownership.
“Correctional institutions aren’t preparing incarcerated persons to become homeowners. They’re preparing you to be under supervision via parole, probation, and even employment at some level,” said Yusef-Andre Wiley via a phone interview. He’s the founder and CEO of TimeList Group, a firm based in Lancaster, Calif., that works with the formerly incarcerated to reshape their lives and become productive in society.
“Often, when people get out, they’re blindsided around the obstacles to even become renters, much less homeownership,” Wiley said. If people were incarcerated before the rise of the internet, they could find building the financial footing required to buy a home even more difficult.
In a world where buying a home — from learning about homeownership to applying for a mortgage — is predominantly online, the formerly incarcerated may lack the tech skills that the non-incarcerated take for granted. For example, Wiley entered the carceral system as a felon on the cusp of age 21 when smartphones and the on-demand nature of the internet weren’t a part of daily life.
When he exited prison at 42, the world had changed in so many ways, and learning technology was like learning a new language. Not only do felons re-entering society have to navigate the basics of finding housing and employment, but they also have to learn mainstream technology and gadgets to gain the same access to housing and housing information as everyone else.
Employment and credit disruptions
Whether a felon’s sentence is three or 30 years, it still creates a significant gap in credit and employment history. Mortgage lenders want a recent and stable history for both, and rebuilding takes time.
“Just think of swiping a debit card and having a PIN number,” Wiley said. “Even if someone was arrested in the past 10 years, they may not have used [these tools] because of their criminal lifestyle.”
Not only do the formerly incarcerated likely emerge from prison with significant trauma, but they may also have trust issues with mainstream society. To effectively build or rebuild an employment and credit history, felons may need a more patient path to gain trust in systems that regularly deliver paychecks and demonstrate a steady, responsible use of banking and credit.
Read more: The best mortgage lenders for bad credit
Some felonies carry a heavy burden once someone’s released from prison. Convicted sex offenders must always register with sex offender registries, which makes their home addresses a matter of public record. While registries use information to help keep communities and their residents safe, they can also make buying and staying in a home more challenging for felons convicted of these crimes.
Felons re-entering society may have paid their legal debts, but society at large can be reluctant to let a criminal past stay in the past.
“Technically, you’d be hard-pressed to find any lender with a blanket statement of “We don’t work with people with criminal backgrounds,” said Dr. Lee Davenport in a phone interview. She’s a fair housing advocate and strategic real estate advisor at Real Estate Bees. “But they will focus on credit and income gaps.” When you explain gaps with incarceration, lenders may find perfectly legal means to deny a mortgage application.
Yes, someone with a felony history can get a mortgage loan. In fact, formerly incarcerated felons can access the same types of home loans that anyone without a criminal history can. However, you might find the most favorable pathway to approval is through mortgages backed by the Federal Housing Administration (FHA).
“Other than VA loans, FHA loans are the most forgiving on guidelines,” said Reed Letson, a mortgage broker with Elevation Mortgage in Suwanee, Ga., in a phone interview. “They’ll approve you down to a score of 580 with a 3.5% down payment and as low as a 500 when putting 10% down.”
Speaking of VA loans, veterans with a felony history keep their VA loan eligibility so long as their discharge status isn’t dishonorable. Those with a dishonorable discharge would have to petition to have their VA benefits reinstated, Letson said in an email.
Letson recently helped a client who served an extensive felony sentence in Leavenworth, a federal prison in Kansas, qualify for a VA mortgage and become a homeowner. His key takeaway for anyone with a felony history looking to buy a home?
“Just because you’ve been incarcerated and have a felony record doesn’t mean you can’t get a mortgage just like someone with no felony record,” he said. “It’s not the end of the world, and homeownership is possible.”
Now, let’s dive into the steps you or anyone with a felony history can take to transition from formerly incarcerated to fulfilled homeowner.
Learn more: FHA vs. VA loan — What are the differences?
1. Create and stick to a budget
Learning how to build and stick to a budget is key, said Wiley, for any former felon looking to achieve housing independence and buy a house. Knowing how to manage a budget puts you in the financial driver’s seat — a skill that might need some fine-tuning after years spent having others make decisions for you.
To start, Wiley suggested using role-play scenarios similar to those he uses with participants in his housing skills course. “Ask yourself, ‘If I only had $2,000 and I was moving into my first apartment, what would you spend it on?’” He said another great question to ask to start your budgeting journey is, “If you need to save 30% of your $2,000 each month and still pay your bills, how would you do that?”
2. Re-establish your employment and income history
Letson said lenders will want a recent, consistent employment history of at least six months if you’re pursuing an FHA loan. This means documented employment, either as an employee through paycheck stubs and W-2 or as an independent contractor through showing income on a 1099.
You can also boost your banking history by opting for direct deposit every payday. When applying for a mortgage, a lender can easily see that your paycheck stubs match your direct deposit history.
Dig deeper: What are the FHA loan requirements for 2025?
“If you’ve spent any time incarcerated, you’ve likely had bills that have fallen behind, and your credit has been impacted,” said Davenport. You may also not have a credit history if you didn’t build one before incarceration. Whichever scenario matches your circumstances, you’ll need to get your credit in ship-shape before applying for a mortgage.
Davenport suggests looking for organizations that offer credit-builder loans and report your payments to the major credit bureaus. While interest rates can be high, these loans help you secure credit and establish a responsible payment history, which can boost your credit score.
Letson has seen clients have success rebuilding credit using secured credit cards. Some don’t require credit checks and simply base your credit line on the card’s security deposit. Just make sure the card reports to the credit bureaus.
You can also use alternate ways to build your credit using non-traditional expenses through a free service like Experian Boost. With Boost, your rent, utility, cell phone, and streaming service bills count toward your positive payment history.
Read more: Can you buy a house with no credit? Yes — here’s how.
If you have a criminal record, it could help to work with a mortgage professional with a history of working with people just like you. Reed stated that he assumed the answer was no until a client asked whether a felon could get a mortgage. Research proved him wrong. That’s why you want a mortgage pro who’s knowledgeable and eager to help you navigate your mortgage options.
He advised working with a mortgage broker who has access to several lenders. A broker will know each lender’s guidelines and help you find the best possible products and rates.
Learn more: What mortgage brokers do and how much they cost
Undoubtedly, the American Dream is more of a myth for some than others. Living with a felony history could make you feel as if you’re stuck in your past and that the everyday comforts of a good job and a nice home are for anyone but you. But Wiley — as someone with a felony history who helps others with similar backgrounds — encouraged people to shift their thinking.
“There’s a reason my company’s tagline is ‘owning our past and creating our future,’” he said. “The past is a lesson you’re going to use to propel your future.”
Buying a home is possible, and by laying some solid financial groundwork, you’ll be well on your way to the good life you deserve: a roof over your head, a place that’s truly yours, and the strength that comes from knowing that you’re the one who made it all happen.
Yes, convicted felons can own property. Federal laws do not prevent felons from doing so. However, state laws and specific restrictions, such as those related to the sex offender registry, may apply in some instances.
Yes, felons can get a mortgage loan through the most popular federal loan programs like FHA, VA, and USDA loans. Conventional mortgages may be more challenging to qualify for due to individual lender restrictions, but not impossible. Working with a mortgage broker familiar with the re-entry challenges felons face can help you find the ideal home loan program for your circumstances.
A felon would need a minimum credit score of 580 with a 3.5% down payment or 500 with a 10% down payment to buy a house using an FHA mortgage — widely recognized as the most lenient with employment and credit. Building credit through secured cards and other tools can help you meet these requirements.
This article was edited by Laura Grace Tarpley.
