The credit bureaus stopped carrying civil judgments, the category an eviction judgment falls under, and the CFPB reports that bankruptcies are now the only public record left on those reports. The tri-merge credit report a mortgage lender pulls, which combines Equifax, Experian and TransUnion, won't list the eviction case. Tenant screening reports that landlords buy are a separate product, and that's where most people see their eviction come up.
What a lender can see from an eviction
- Unpaid rent in collections. When a landlord sends back rent to a collection agency, it can show up as a collection account. FHA takes no action on non-medical collections under $2,000 in total with an automated approval. VA doesn't require collections paid, and neither does a Conventional loan on a one-unit home you'll live in. USDA has options over $2,000, including a payment plan.
- A money judgment for back rent. It isn't on the credit report, but the title search can find it. Under Florida Statutes 55.10, a judgment recorded in a county's official records becomes a lien on real property there. FHA wants a court-ordered judgment paid, or on a written agreement with three months of on-time payments. USDA wants it paid or three timely payments made, VA wants it paid or on a written repayment agreement, and Conventional wants it paid at or before closing.
- Rent paid since. VA generally wants 12 months of satisfactory payment history, and USDA treats a rent payment 30 or more days late in the past 12 months as significant derogatory credit that needs an exception. On-time rent since the eviction answers both.
When the eviction happened
An eviction more than a year back, followed by on-time rent, mostly matters through any collection or judgment it left. One in the last 12 months brings the late rent around it into the underwriter's review, and a one-page letter of explanation saying what happened, such as a cut in hours or a medical bill, helps put it in context.
A worked example in Escambia County
A buyer was evicted three years ago after her hours were cut. The landlord sent $1,450 of unpaid rent to a collection agency and never sued for a money judgment. She has paid $1,700 a month in rent on time for the 24 months since. She earns $4,900 a month, pays $180 in card minimums, and her middle score is 596.
The $1,450 collection is under FHA's $2,000 line, so with an automated approval it needs no payoff and adds nothing to her ratios. Here's a $260,000 single-family home with FHA at 3.5% down and a 5.75% rate on a 30-year fixed, taxes at 0.85% of the price and insurance at $240 a month:
| Payment piece | Amount |
|---|---|
| Down payment (3.5%) | $9,100 |
| Total loan with 1.75% upfront MIP | $255,290.75 |
| Principal and interest | $1,489.81 |
| Monthly mortgage insurance (0.55% a year) | $115.00 |
| Property taxes | $184.17 |
| Homeowners insurance | $240.00 |
| Total payment | $2,028.98 |
That's 41.4% of her income, and 45.1% with the card minimums, inside FHA's 46.9% and 56.9% limits. The new payment is $328.98 more than the rent she already pays on time every month. Her 596 score also clears the 580 starting point for FHA 100% financing, where a down payment assistance second covers the $9,100.
Had the landlord won a $1,450 money judgment instead, the amount would be the same but the rule would change. She'd pay it before closing, or set up a written agreement and make three on-time payments first.
Before you apply
- Pull all three credit reports. They're free at AnnualCreditReport.com. Look for any rent collection and check the balance.
- Search the county's official records. Look up your name in the county where the eviction was filed for any recorded judgment.
- Get a settlement in writing. Collection agencies often accept less than the full balance, and the agency's paid-in-full letter is what the lender asks for.
- Pay rent by check or bank transfer. Twelve months of statements showing on-time rent is the strongest proof you can bring.
Try the affordability calculator with your income to see the price range your rent history supports. Then call AAA Capital Funding at 888-601-8344 and tell us what the eviction left behind. We'll check the reports and the county records and map out the approval from there.