How to Get a DACA Mortgage Loan

Getting a loan to buy a home is easier than you think for people in the Deferred Action for Childhood Arrivals (DACA) program.

In this article, I'll outline the mortgage process so you avoid the pitfalls many DACA recipients experience.  

 

Do all mortgage lenders offer DACA loans?

Not all mortgage lenders offer loans to DACA recipients. Many large banks only lend to U.S. citizens or permanent residents, which can limit the options available to DACA recipients.

Due to their immigration status, DACA recipients may face rejection from traditional banks, even if they meet financial requirements like steady income, good credit, and savings for a down payment.

NewCastle Home Loans offers conventional mortgages to DACA recipients in Florida, Illinois, Indiana, and Tennessee with the same terms available to U.S. citizens.

We specialize in helping Dreamers buy homes and consistently offer rates that beat the big banks, saving you money in the long run.

Are you having trouble getting your mortgage approved by the bank? We can help—start by getting pre-approved. We will approve your mortgage in just one day and close it in ten days.

 

 

Am I eligible for a DACA mortgage?

Yes. DACA recipients are eligible for conventional mortgages, but not for FHA or USDA mortgages.

 

 FHA Loans → No 

As of May 25, 2025, the Federal Housing Administration (FHA) no longer insures mortgages for DACA recipients, according to HUD Mortgagee Letter 25-048.

 

 USDA Loans → No 

The U.S. Department of Agriculture (USDA) also recently updated its guidelines, making DACA recipients ineligible for its loan program. (USDA Eligibility of Qualified Aliens)

 

 Conventional Mortgage → Yes 

DACA recipients are eligible for conventional mortgages.  Still, not every lender participates. Many big banks and national lenders decline DACA applications. That’s why working with an experienced lender matters. 

Suppose you can legally live and work in the United States and meet the standard loan criteria. In that case, you are eligible with no extra hoops.

To prove your DACA status,  you'll need to provide:

1. Social Security Card
2. Employment Authorization Document (EAD) issued by the U.S. Citizenship and Immigration Services (USCIS). Your EAD card should list C33 under "Category."
   

 

Schedule a time to talk with a mortgage expert at Newcastle Home Loans to see if you're eligible for a conventional loan.  We've helped many Dreamers become homeowners, and we'd be happy to help you,  too.  

 

 

How much do DACA recipients need for a down payment on a house?

DACA recipients can buy a home with as little as 3% down on a single-family home, condo, or townhouse they plan to live in.

Your exact down payment depends on several factors, including the property type, whether it will be your primary residence, your credit and income, and the lender’s requirements.

At NewCastle Home Loans, we make it simple. DACA recipients get the same low down payment options as U.S. citizens,  just 3% down for qualifying buyers purchasing a primary residence. That keeps upfront costs low, so you can focus on finding the right home.

 

 

Suppose you're buying a 2-to-4-unit property, planning to use the home as an investment, or have unique financial circumstances. In that case, the required down payment may be higher.

The following chart shows the amount of money you'll need for the down payment when purchasing a home as your primary residence.

 

Primary residence—Minimum down payment
Loan type	Property type	Down payment
Conventional	1-unit	3%
	2-to-4-units	5%

 

The minimum down payment for a second home is 10% of the purchase price.

 

Second Home—Minimum down payment
Loan type	Property type	Down payment
Conventional	1-unit	10%

 

When buying an investment property, the minimum down payment is 15% of the purchase price.

 

Investment Property—Minimum down payment
Loan type	Property type	Down payment
Conventional	1-unit	15%
	2-to-4-units	25%

 

Consult with a lender who is familiar with your situation and can help you understand your down payment options. 

 

 

How much will a DACA mortgage cost?

A DACA mortgage costs the same as a mortgage for U.S. citizens. There are no extra fees or higher rates because of your DACA status.

The exact cost depends on factors like your down payment, loan amount, interest rate, repayment term, and lender fees. You’ll pay two types of costs:

• Upfront costs at closing, including your down payment and closing costs.

• Ongoing costs after closing, which are your monthly mortgage payments.

 

To see what this looks like for your situation, try our free mortgage calculator. You can:

1. Enter the purchase price, down payment, and credit score.
2. Instantly view the rate, monthly payment, and closing costs.
3. Get clear numbers so you know exactly what to expect when buying a home.

 

Here's a short video: How much are closing costs in Chicago? 

 

Change the purchase price, down payment, and loan type. Then, calculate the costs based on current rates. Feel free to explore the options so you can choose the right loan for the perfect home.

 

 

Do I qualify for a DACA mortgage? 

The loan approval requirements are the same for DACA recipients as for U.S. citizens.

You’ll need to meet the minimum credit score requirement, prove a history of employment, provide a record of your income, and show that you have enough money to cover the down payment and closing costs. 

• Credit score: 620 minimum
• Proof of income. Lenders typically require recent pay stubs and W-2 statements for the last two years. If you're self-employed, provide the lender copies of your federal tax returns for the last two years. 
• Employment history.  Your employment and income should be steady and likely to continue. 
• Proof that you have sufficient funds to close.  Provide copies of your most recent bank statements. 

Our team of home loan experts is dedicated to helping you get your mortgage. Here are just a few instances when we’ve been able to secure home loans for Dreamers with more complex qualifying conditions:

 

 

 

 

• Acceptable visas for non-permanent residents

Buying a home starts with a mortgage pre-approval. Getting pre-approved through a lender familiar with your situation will help you understand your down payment options more clearly. 

 

 

Work with a lender who understands DACA mortgages.

Not all lenders work with DACA recipients, but we do. At NewCastle Home Loans, we know the process, the paperwork, and the challenges you might face. That means no surprises, no last-minute denials, and no wasted time.

We make it easy to get pre-approved in 1 day and close in as little as 2 weeks—all with a great rate.

 

Read our Google reviews.

 

 

You can rely on our staff of certified mortgage underwriters to guide you along the path to homeownership, ensuring everything goes smoothly.

 

 

How can I get pre-approved for a mortgage if I have DACA status?

Getting pre-approved for a mortgage as a DACA recipient is similar to the process for any other homebuyer. However, due to your immigration status, you may have additional documentation requirements.

Follow our 3-step closing plan to get approved or pre-approved quickly.

 

1. Apply online. 

• Complete the application and select your loan
• Check your credit
• Share your income documents, such as pay stubs, W-2 statements, and tax returns.

2. Get your pre-approval letter.

• Our mortgage underwriters verify your information.
• We approve your application.
• You get a verified mortgage pre-approval letter signed by an underwriter.

3. Close in 2 weeks.

• Share your pre-approval letter with your real estate agent.
• Find the home you want, and make an offer to buy it. 
• After the seller accepts your offer, we finish processing the mortgage and prepare for your closing.
  

 

 

Can a DACA recipient refinance their home with an FHA loan?

DACA recipients are not eligible to refinance with an FHA loan.  However, you can refinance with a conventional mortgage, and it might work in your favor.

 

 

Conventional loans don’t require mortgage insurance if you’ve built up 20% or more equity in your home. That means lower monthly payments and more savings over time.

At NewCastle Home Loans, we’ll help you explore your options and make the switch simple.

Start your refinance application online.