FHA is Now Accepting DACA Home Loans
In a statement, lawmakers recently announced that Deferred Action for Childhood Arrivals (DACA) recipients will now be fully eligible for FHA (Federal Housing Administration) loans, making it more accessible for many to buy real estate in the United States.
The FHA’s Official Stance on DACA Home Loans
Previously (before January 19th), DACA recipients were ineligible for FHA home loans as non-US citizens are not eligible for FHA mortgages and DACA recipients, at that time, were not considered lawful residents of the country.
Though DACA recipients were previously not eligible for FHA mortgages, they were not completely excluded from homeownership. DACA recipients were only eligible for conventional loans which can require higher down payments and higher credit scores.
Now, with new rule changes in place, many recipients of DACA will be able to take the next steps toward homeownership in America with access to FHA loans.
New Rules for DACA Recipients Getting FHA Loans
One important clarification to make about the new rules in place is that they do not make it easier for DACA recipients to receive FHA home loans over other citizens, but rather they simply make it possible and introduce a level playing field.
DACA Home Loan recipients must still qualify under the same eligibility guidelines as other US residents to get approved for an FHA loan, which are:
A credit score of at least 580.
A debt-to-income ratio of 50% or less.
3.5% down payment if your credit score is 580 or higher.
10% down payment if your credit score is 500-579.
The house must be your primary residence and must meet the FHA’s minimum property requirements.
Which DACA Recipients are Eligible for an FHA Loan?
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.
If a DACA recipient meets those qualifications and files an approved application with the FHA, they will then be eligible to become a homeowner in the United States.
To learn more about FHA loans and the mortgage process, schedule an appointment with a residential real estate attorney at Lee Scott Perres, P.C.
