DACA Recipients Can Now Apply for FHA Loans
The U.S. Department of Housing and Urban Development (HUD) recently announced that the Federal Housing Administration (FHA) would allow Deferred Action for Childhood Arrivals (DACA) program recipients to apply for FHA mortgages. This marks the first time that DACA recipients would be eligible for FHA loans. provided that they meet all other FHA requirements.
To become eligible for a DACA home loan through the FHA, recipients must have:
A valid Social Security Number
U.S. work eligibility
Satisfied the same requirements and conditions as any other U.S. citizens.
The property that the FHA Loan would be financing would also need to be the home buyer’s primary residence.
Prior to January 19, DACA recipients were ineligible for FHA home loans due to specific language stating non-US citizens were not eligible for FHA mortgages. DACA recipients were only eligible for conventional loans which usually require higher down payment and higher credit scores. The FHA loan product is often a preferred product for first-time homebuyers because it has lower credit qualifications (as low as 580 but is usually higher due to lender overlays) and requires less down payment - as low as 3.5%. With this new rule many DACA recipients will be able to start their journey towards homeownership.
If you are a DACA recipient and would like to take advantage of the current low mortgage rates schedule a phone consultation with one of our Mortgage Specialists to find out how you may qualify for an FHA Loan!