Grants For Felons To Buy A Home in 2025

Homeownership can seem out of reach when you’ve got a criminal record. But whether you’re a first-time buyer or trying to get back on the housing ladder, there are grants for felons to buy a home and other resources available to help.

Grants For Felons To Buy A Home in 2025

We’re going to take a look at some homebuyer grants and saving accounts to help with down payments and closing costs, and loan options that make homeownership more affordable in the long run.

But before we get more details, let’s clear up a big worry that felons often have: Can a felon buy a house?

Yes, absolutely. If you can afford the payments and clear the credit check, there’s nothing to stop you from buying a house. After years of submitting to landlord background checks, you’ll find the home-buying process far less intrusive.

Grow Your Down Payment Fund With Individual Development Accounts (IDAs)

Together with other first-time home buyer programs for felons, using an Individual Development Account will help you save up for a down payment on your first home.

IDAs are restricted accounts for low-income savers that limit how you use your funds, but one of the allowable uses is for a home downpayment.

So why would you want to save with an IDA? Quite simply because of the matched funding that’s available.

IDA programs vary, but to give you an example of the free money available, the IDA program run by the United Way of Central Alabama matches your $2,000 of earned income savings with an extra $4,000 giving you a total of $6,000. It’s essentially a grant for $4,000.

Income eligibility guidelines are set at 2x the federal poverty level. Currently, that’s a gross income of less than $55,500 for a family of four or $27,180 for an individual.

Find an IDA program in your area and call for details: https://prosperitynow.org/map/idas

National Homebuyers Fund Down Payment Assistance

This down payment program has flexible eligibility requirements on income limits and FICO scores. Homebuyers can get deposit and closing cost assistance up to 5% of the mortgage loan amount. Depending on the type of assistance you qualify for, you may not have to repay the funds.

Visit the NHF website to learn more: https://www.nhfloan.org/programs.html

Housing Choice Vouchers (HCV) Homeownership Program

The HCV homeownership program gives renters in the HCV rental program the ability to get monthly assistance towards the costs of homeownership.

You’ll need to be in the rental program to qualify. Felons can apply for the Housing Choice Voucher rental program, but many housing authorities have waiting lists, so help won’t usually be available right away.

Find out if your public housing authority offers this program HERE.

First-Time Homebuyer Programs For Felons

Felons are eligible for first-time buyer programs that offer valuable perks like low down payments, closing cost assistance, and tax credits that can make a big difference in home affordability.

If you qualify for a mortgage, there’s a good chance you’ll also be eligible for first-time buyer assistance.

The Federal Housing Administration (FHA) loan is a popular choice for many borrowers. FHA loans are easier to qualify for because they’re government-backed and geared toward borrowers with lower credit scores or less cash saved for a down payment— two problems that often affect former felons.

There’s no background check requirement for FHA loans, making them accessible to buyers with a felony conviction.

Here’s what you’ll need for an FHA loan:

Down Payment Requirements: A 3.5% down payment if your credit score is 580 or higher; a 10% down payment if your score falls between 500 and 579.
Debt-to-Income Ratio: Your debt-to-income ratio (DTI) should be 43% or lower to meet FHA guidelines.
Approved Lender: You’ll need to work with an FHA-approved lender, which means you may have fewer options when it comes to choosing your mortgage provider.

State First-Time Home Buyer Programs

In addition to FHA loans, check with your state’s housing agency for first-time buyer programs. Many regions offer extra assistance that doesn’t require background checks so your felony won’t be an issue. Assistance can stack with an FHA loan to help cover upfront costs. For example:

California: The CalHFA MyHome Assistance Program offers deferred-payment loans for down payments.
Texas: The Texas Department of Housing and Community Affairs (TDHCA) offers grants and loans to help with down payments.
Florida: The Florida Housing Finance Corporation (FHFC) has a variety of programs, including down payment assistance for first-time homebuyers.

Speaking with a mortgage broker or a housing counselor can help you choose the best home loans for felons for your financial situation and goals.

Programs For Felons To Get Housing

Felons can also qualify for homebuyer programs offered by Fannie Mae, a government-backed financial services agency.

HomePath is Fannie Mae’s program for selling foreclosed homes they’ve taken back from previous owners. This means these homes are often more affordable than typical listings.

How HomePath Works

Fannie Mae posts all of its available properties online. Real estate agents registered with HomePath will help you find suitable properties, browse photos, and see detailed property descriptions.

The HomePath program focuses on selling to people who want to live in the homes they buy rather than investors looking to flip properties.

This means their housing inventory is offered to regular buyers before investors, which can make it easier to get your offer accepted even if your budget or credit isn’t as strong.

Some homes are move-in ready, while others need some fixing up. Finding a house that needs some work gives you more options if you’re working with a tighter budget.

HomePath Programs

HomePath helps buyers cover their upfront costs and access better financing.

HomeReady Mortgage: Eligible low-income borrowers can get a $2,500 credit to help with downpayment and closing costs when they finance their home with a HomeReady loan. These loans can help you purchase a home with a down payment as low as 3%.

HomePath Ready Buyer Program: If you’re buying a HomePath property as a first-time buyer, this program offers up to 3% of the purchase price toward closing costs.

This program can be combined with the HomeReady Mortgage for added support on your purchase, covering both the down payment and closing costs.

HomePath financing is only available from Fannie Mae-approved lenders.