"Can Someone with a Felony Buy a Home?" Navigating Homeownership with a Criminal Record
As partially featured in a Yahoo! Finance interview.
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| Caption: AI-generated home. |
The path to homeownership can present unique challenges, especially when past legal issues are a factor. So can those with a felony buy a home? Short answer: yes, but it may be complicated, so those with a criminal record should create the mindset now to "leave no stone unturned".
Did you know? "Blanket Bans" Are Taboo
A blanket denial of housing, including mortgage applications, based solely on a criminal record may violate fair housing and lending laws, particularly at the local and state levels (as of July 2025, there are 15 locations with some form of fair chance protections for those who have criminal records).
"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, a fair housing advocate and strategic real estate advisor. "But they will focus on credit and income gaps.”
These "credit and income gaps," often resulting from periods of incarceration, can legally influence mortgage application outcomes. When such gaps are explained by a criminal background, lenders may legitimately use these financial concerns to deny applications.
Beyond direct financial gaps, individuals with criminal records often face significant hurdles in securing stable employment and rental housing, which can further complicate their ability to demonstrate financial stability and a positive housing history—key factors in mortgage approval. The collateral consequences of a criminal record extend into every aspect of financial life, making the journey to homeownership particularly arduous without careful planning and support.
But what if I live in a place that has no state or local protections for one's criminal record?
While the federal Fair Housing Act does not explicitly list criminal history as a protected class, guidance from the Department of Housing and Urban Development (HUD) indicates that policies that disproportionately affect certain racial or ethnic groups due to criminal record status may constitute illegal discrimination. This means that blanket policies denying housing or mortgages based solely on criminal records, without considering the nature of the crime or the time elapsed, could face legal challenges.
Resources such as local fair housing organizations, legal aid societies, and re-entry programs can provide invaluable assistance. These organizations often offer free or low-cost legal advice, help with expungement or record sealing, and support in navigating the housing and employment markets. Connecting with these networks can significantly improve an individual's prospects for homeownership.
Learn more about buying a home when you have a criminal record in this Yahoo! Finance article for which I was interviewed (I always have more to say than what they can feature lol).
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