Ex-offender eligible to buy a property – Options for housing that come by are very limited in nature after a felon is released from prison. When buying a house or a property, there are multiple options to get one for the ex-offenders.
Is an ex-offender eligible to buy a property? – The requirements
Deciding to own a property is not simple and is affected by several factors. The ex-offenders must save money to pay for the down payments for loans, as well as make sure to maximize their credit scores. In this way, getting a mortgage that is pre-approved will not be a big hurdle.
Documents required buying a property for the ex-offenders
- Provide Income tax returns for the past 2 years.
- Inclusion of W – 2 forms for the past 2 years in the application
- Attach the bank statements for few months
- Provision of the proof of mortgage along with rent receipts for the last 1 year.
- Details of all debts including credit cards, student loans, auto loans, and alumni.
- List of all assets such as real estate details, investment details, etc
Ex-offender eligible to buy a property need to look for loans
Talking about the decision for buying a property is not a small thing. One must make sure to have enough of the finances or manage them properly. However, for the ex-offenders eligible to buy a property, they need to look for loans. They can opt for the different loans offered from FHA, USDA, or conventional ones.
Furthermore, look at the pointers on how the ex-offenders can take loans to manage the purchase of the property.
- Felons receive financial support from the USDA and FHA loans
- A Conventional Home Loan generally requires a good credit score which should be at least 620 for the ex-offenders
- A down payment of 20% of the total value of the house is required to pay.
- Conventional loan takes into consideration the special factor called PMI. It acts as a guarantee for the lender, which assures that the mortgage amount will be received if the borrower fails to complete the loan requirement.
- FHA Loans are popular loans for first-time property buyers and have a benefit as they offer affordable down payment schemes.
- For the FHA loan to be approved, the ex-offenders need to sustain a credit score of 580 or more. Here, the down payment terms are to pay 3.5% of the total loan.
- For the individuals who have a low credit score, they require to focus on improving the same before applying for a loan.
Significance of USDA and FHA loans for ex-offenders
As you know about the loans, ex-offenders should consider them before buying a property. Meanwhile, the USDA and FHA loans carry much of the benefits. Though getting a loan approved is not that much easier, but here the terms and conditions are simple. Being an ex-offender, the individual can make use of these loans without looking for alternatives.
- There is no need for background checks to be done by the lender
- Lenders obtain the credit report for ex-offenders along with proof of residency for the last 10 years
- Background checks for any ex-offender depend on credit history and credit score.
- The current employment status and identity of a person gets verified
- Ex-offenders on their release do not have enough money to qualify for a mortgage, so these loans help a lot
- Prison time has no source of income and ex-offenders cannot pay basic bills
- The ex-offender’s family suffer financially till they serve their sentences
- Ex-offenders don’t have a suitable job so they cannot afford a property
Is an ex-offender eligible to buy a property? – Making the buying case stronger
Talking about the decision of buying a property, the ex-offenders need to make sure, their buying case is stronger. Look at some of the key points, which the ex-felons should know about.
- Their focus and decision to buy a property should be consistent
- Make sure to avoid any kind of dishonesty in the application
- They can opt for expungement of their records thereby ending up with a suitable job
There you are. Being ex-offender, they must make sure to follow a positive attitude. In this way, the ex-offenders eligible to buy a property can fulfill their dreams. With the right source of income or with the loans helping them, they will also get moral support from their family and friends. Go for the USDA or FHA loans as they have reasonable and affordable financing options.