Can I Get An FHA Loan With An Eviction?

An eviction does not automatically block an FHA loan, but lenders evaluate timing, cause, and supporting evidence before approving.

• Evictions within the past two years trigger a mandatory housing‑history review per FHA underwriting guidelines.
• Non‑payment evictions raise risk; proof that the debt was settled or that the loss of income was temporary helps.
• Court‑ordered evictions for property damage can be mitigated by documentation of repairs or restitution.
• Strong credit score, larger down payment, or substantial cash reserves offset the negative mark.
• Lender typically requests a concise written explanation plus proof of stable employment and income.

The eviction stays on the record, yet its influence wanes the longer you wait and can demonstrate improved financial habits.

• 0‑12 months: Underwriters see the eviction immediately; a clear hardship explanation and a recent on‑time rental or mortgage payment can offset the negative mark.
• 12‑24 months: The judgment remains on the credit report, but an uninterrupted payment history after the eviction often convinces lenders to move forward.
• 24‑36 months: With a solid credit score and no further housing incidents, the eviction becomes a secondary factor rather than a deal‑breaker.
• 36‑48 months: At this stage, the eviction is still listed but is usually outweighed by strong compensating factors such as a larger down payment or extensive savings.
• 48+ months: The eviction persists for up to seven years, yet most FHA underwriters treat it as a historical note, focusing primarily on the borrower's current risk profile.

(Reference: HUD Handbook 4000.1 outlines case‑by‑case evaluation.)

An eviction appears on a credit report mainly as a collection account, not as a direct 'eviction' entry, and that mark can remain for up to seven years. When a landlord files a judgment, the court record becomes a public collection that bureaus upload; unpaid rent may also show as a charged‑off or a debt in collections. If a landlord never pursues legal action, the rental delinquency often stays off the report, but any subsequent collection still drags the score down.

FHA underwriters scrutinize the last three years of housing history; a collection tied to an eviction can depress the credit score enough to fall below the typical 620 benchmark and inflate the debt‑to‑income ratio. As we covered above, that may cause the FHA loan to be rejected unless the borrower compensates with a larger down payment or a co‑borrower. For a deeper dive, see HUD guidance on credit reporting.

No, an eviction does not automatically eliminate FHA loan eligibility. Lenders weigh the eviction's age, resolution status, and surrounding circumstances, so a recent, unresolved case may raise concerns while an older, settled eviction often fades from the underwriting picture (as we covered above).

During review, the FHA's seven‑year credit reporting window and its housing history criteria allow exceptions; borrowers whose eviction occurred more than three years ago, was the result of a medical hardship, or has been legally cleared can still meet the loan's requirements. This nuance sets the stage for the '5 steps to qualify for FHA post‑eviction' section that follows.

FHA lenders will consider an eviction if you follow five key actions.

1. Collect every eviction record - court filings, judgment, settlement, and any payment proof. Complete paperwork shows the event is closed.
2. Build a spotless payment history for at least 12 to 24 months. Lenders use this 'seasoning' period to gauge credit rehabilitation.
3. Trim debt‑to‑income below the 43 % threshold. Paying down balances or adding income improves the ratio quickly.
4. Draft a straight‑to‑the‑point explanation of why the eviction occurred, attaching evidence like termination letters or medical bills (as we covered above).
5. Compare lenders' overlay policies and choose one that accepts the documented history and recent credit behavior. Some investors waive additional waiting if the prior steps are solid.

Lenders want a concise, factual eviction narrative that shows responsibility and recovery. Provide the story in writing before the loan file is submitted.

• State the eviction date, address, and court case number.
• Detail the specific cause - job loss, medical crisis, or lease violation - without blaming the landlord.
• Attach the eviction filing and any settlement or dismissal paperwork.
• Show proof of rent payments made after the eviction, such as bank statements or landlord receipts.
• Include a letter from the current landlord confirming on‑time payments for at least the past 12 months (FHA's typical review window).
• Highlight steps taken to improve credit, like paying down balances or enrolling in a budgeting program.
• Reference any extenuating circumstances, for example a medical emergency, with supporting doctor notes.

A well‑documented narrative paired with solid post‑eviction behavior sets the stage for the next tactic - boosting FHA odds with a larger down payment (see the following section).

Putting more cash down directly improves FHA chances after an eviction. A larger payment shrinks the loan‑to‑value ratio, which signals lower risk to the lender and often eases the mandatory mortgage‑insurance premium. Reducing the loan size also trims the monthly debt‑to‑income calculation, making it easier to meet the typical 43 % ceiling. The FHA's minimum 3.5 % equity threshold can be exceeded, allowing the borrower to qualify with a slightly lower credit score than usual. Demonstrating the ability to save reinforces financial stability, a factor underwriters weigh alongside the eviction record. As we covered above, the eviction itself isn't fatal; the down payment can tip the balance.

This advantage sets the stage for comparing FHA to conventional options in the next section.

FHA generally offers the most leeway after an eviction, treating the event as a derogatory credit item rather than an automatic disqualifier. Lenders often prefer at least 12 months since the eviction, yet manual underwriting can approve sooner when compensating factors - steady employment, sizable down payment, or a clean recent payment history - are strong (see FHA underwriting guidelines).

An eviction shows up on the credit report for seven years, but FHA's case‑by‑case approach frequently lets borrowers move forward once the overall risk profile improves. Early approval becomes possible if the applicant demonstrates consistent rent or mortgage payments after the incident. That flexibility usually outpaces other loan programs.

Conventional, VA, and USDA loans tend to be stricter, typically requiring two years without major derogatory events before considering a new application. VA and USDA follow a similar playbook, often looking for a 12‑ to 24‑month clean record and offering fewer manual‑underwriting waivers. Exceptions exist but usually demand additional documentation, higher credit scores, or larger reserves.

Because of tighter thresholds, borrowers with recent evictions find it harder to qualify for these programs compared to FHA. Consequently, many turn to FHA first when rebuilding after an eviction.

John Doe lost his full‑time job, fell behind rent, and received an eviction notice that later entered his credit report. When he applied for an FHA loan six months after the court judgment, the lender approved him because the eviction was recent, documented, and tied to a single income disruption rather than chronic delinquency.

The underwriter weighed several mitigants: a letter explaining the job loss, proof of new employment with a stable salary, a cleared balance on the past‑due rent, and a 10 % down payment that lowered the loan‑to‑value ratio. These items satisfied FHA's 'reasonable cause' exception, showing the borrower's ability to meet future obligations.

The same strategy appears in the next section on medical‑related evictions, where health‑driven job loss offers comparable relief pathways.

• Gather a physician's statement confirming the health condition that forced the move, including diagnosis date and treatment plan.
• Attach the eviction notice, court order, and a timeline that directly links housing loss to the medical issue.
• Present recent rent‑payment records, employer verification, and a credit‑score snapshot to demonstrate financial stability after the eviction.
• Declare that every borrower on the FHA loan will occupy the property as a primary residence; a co‑borrower does not bypass this requirement.
• Forward the medical‑hardship packet to the lender, citing HUD medical hardship guidelines for possible discretionary approval.