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How to Get a DACA Mortgage Loan

Jim Quist Feb 15, 2023 4:10:00 PM
Daca mortgage home loan

Buying a home can be scary for homebuyers in the Deferred Action for Childhood Arrivals (DACA) program. In this article, we outline the mortgage process so you can avoid the pitfalls many DACA recipients experience along the way. 


Do all mortgage lenders offer DACA loans?

DACA recipients can get a home loan with the same terms and rates as U.S. citizens. That said, many lenders still don’t offer mortgages to Dreamers.

We know this because our customers tell us: they’re often denied by banks just because of their DACA status. But even if a big bank turns you down, rest assured—it’s still possible to achieve your goal of homeownership, and we’re here to help. 

Need a DACA loan fast? You’re in the right place. We can get you the home loan you need, just like we’ve done for many other DACA recipients.

Get approved in one day and be ready to close in ten days. Our quick process is designed to get you the lowest interest rate and closing costs in record time, so you’ll have the loan you need and an affordable payment for your home. 

Get pre-approved


Am I eligible for a DACA mortgage?

DACA recipients are eligible for most types of mortgages if they can prove they’re lawful, non-permanent residents of the U.S. In other words, as a Dreamer, you’re eligible for homeownership as long as you have the paperwork showing that you can live and work here legally. 

NewCastle Home Loans offer conventional loans and FHA loans to DACA recipients.

When you apply, you’ll be asked to provide proof of your legal status with copies of a few documents:

  1. Social Security Card. 
  2. Current Employment Authorization Document (EAD card) issued by the U.S. Citizenship and Immigration Services (USCIS). Your EAD card should list C33 under “Category.”
  3. Previous expired EAD card. This shows your lender that USCIS has a history of renewing your residency status and will continue to renew it in the future.

By providing these documents, you’ll prove you’re eligible for a mortgage in the U.S. But remember that being eligible for a loan and being approved are two different things. Being eligible for a loan doesn’t guarantee you’ll be approved, but it’s a crucial first step.

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What type of property can I buy with a DACA mortgage?

DACA recipients may be eligible for certain types of mortgages depending on the lender's requirements and the borrower's specific circumstances. However, DACA recipients may face some limitations when obtaining a mortgage because they are not U.S. citizens or permanent residents.

Generally, DACA recipients can buy any residential property available to other borrowers, such as a single-family home, a condo, a townhouse, or a multi-family property. However, it's important to note that not all mortgage lenders offer DACA mortgages, and those that do may have stricter requirements, such as a higher credit score or a larger down payment.

Additionally, some government-backed mortgage programs, such as FHA (Federal Housing Administration) loans, may be available to DACA recipients if they meet the lender's criteria. Still, there may be additional restrictions and requirements.

It's essential for DACA recipients interested in buying a property to work with a knowledgeable and experienced lender who can guide them through the mortgage process and help them find the best options for their specific situation.

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

The amount of down payment required for a DACA recipient to purchase a house depends on several factors, including the lender's requirements, the type of mortgage, and the borrower's financial situation.

NewCastle Home Loans requires a down payment of at least 3% of the purchase price.

For example, if the home's purchase price is $300,000, the minimum down payment is $9,000. However, some lenders may require a larger down payment from DACA recipients due to their immigration status.

The following chart shows you how much money you'll need for the down payment.


Questions? Schedule some time to take to a mortgage expert at NewCastle Home Loans. Get straightforward answers. Find out what to do so you get going in the right direction. 

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How much will a DACA mortgage cost?

There are two sets of costs you’ll be responsible for when buying a home. First, you need cash upfront to cover the down payment and closing costs. Then, after closing, you make payments each month to the lender.

The exact upfront cost and monthly payments depend on a few variables, including the price of your home, the loan amount, your loan’s interest rate, and the lender's closing costs.

Use our free mortgage calculator to get the details on rates, payments, and closing costs online, 24/7. Here's how it works:

  1. Enter basic information, including the estimated purchase price, down payment, and credit score.
  2. View the actual rate and monthly payment upfront.
  3. See the closing costs so you know what to expect when buying a home.
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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 choose the right loan for the perfect home.

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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 required credit score, 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. You need a 580 credit score for an FHA loan and a 620 score for a conventional loan.
  • Proof of income. Lenders typically require recent pay stubs, W-2 statements, or federal tax returns if you’re self-employed to ensure you make enough money to qualify for the loan.
  • Employment history. Your employment and income should be steady and likely to continue. 
  • Proof you have enough cash to close. Provide copies of your most recent bank statements. 

Our team of experienced lenders 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:


Example 1: Marco got a raise.

Marco has worked in retail management for three years and recently received a raise. His hourly wage increased from $16/hour to $21/hour. While other traditional mortgage lenders may use Marco’s average income over the last two years, we used  Marco’s new, higher wage to measure his income because he has a proven employment history at his current job.

Example 2: Isobel just started a new career.

Isobel is a teacher who graduated recently and started working two months ago. In her new teaching job, she makes $51,000 annually. While Isobel hasn’t been at her current job for the standard two years, she has an additional three years of experience studying education at the university level. We used her current income on her mortgage application because of her combined years of study and work in the field of education. 

Example 3: Alex changed jobs recently.

Alex works in sales but recently changed jobs. He received commission income at both his previous and current jobs. He earned $10,000 in commissions in previous years and $20,000 over the last year. We averaged his commission earnings from his new and old jobs over the last 24 months and used that amount, $15,000, to approve his home loan.

Book time to talk 


Get approved for a DACA mortgage, Step-by-Step.

Pre-approvals from other lenders could be better. But unfortunately, they don't verify any of your financial information. And so you feel uneasy about an uncertain outcome.

When you get pre-approved by NewCastle Home Loans, one of our loan decision-makers verifies your information so you feel confident about buying a home.

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

1. Apply online 

  • Check credit
  • Sync with your bank to import your bank statements
  • Select the type of loan you want

2. Get your pre-approval letter.

  • Save your financial information to the Loan Dashboard.
  • We verify your it and confirm that you are eligible and qualify for the home loan.
  • Get a mortgage pre-approval letter signed by an underwriter to enhance your negotiating power, especially when competing with other buyers.

3. Close in 2 weeks.

  • 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.
  • Close

Get pre-approved



Too often, we hear stories about DACA recipients losing their dream homes because of a last-minute denial from a big bank or online lender.

Because we’re committed to helping Dreamers achieve homeownership, we’ve made it easy for you to get approved in 1 day and close in 2 weeks, with a lower rate to boot. 

Check out some of the stories behind previous DACA participants who received mortgages through NewCastle:

NewCastle Home Loans - Google Review

NewCastle Home Loans - Google Review

NewCastle Home Loans - Google Review

NewCastle Home Loans - Google Review

Rely on our staff of certified mortgage underwriters to guide you along the path to homeownership, making sure everything goes smoothly.

Book time to talk 


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