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How to Get a DACA Mortgage Loan

Jim Quist Mar 14, 2024 5:00:00 PM
DACA Mortgage NewCastle Home Loans Jim Quist

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, who face unique challenges when obtaining mortgage loans because of their immigration status.

While some lenders may be willing to work with DACA recipients, others may only offer loans to individuals with lawful permanent residency or citizenship status.

Find a lender that explicitly advertises DACA mortgage loans or is known to be DACA-friendly. These lenders have programs tailored to DACA recipients or have experience working with borrowers in similar situations. Work with a knowledgeable mortgage lender who can help you navigate the process.

NewCastle Home Loans is a DACA-friendly mortgage lender that can approve your mortgage in one day and close it in ten days. You get the loan you need at the lowest rate to buy a home and with affordable payments.  

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 if you have the paperwork showing you can legally live and work here. 

When you apply, provide copies of the following documents proving your U.S. residency status:

  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."

Dreamers are eligible for conventional mortgages, FHA loans, and USDA loans. Here are the agency announcements:

Remember that DACA recipients may face some limitations because they are not U.S. citizens or permanent residents. Many banks have stricter requirements, such as higher credit scores or larger down payments.

Dreamers interested in buying a property should work with a knowledgeable and experienced lender who can guide them through the mortgage process and help them find the best options.

NewCastle Home Loans offer conventional, FHA, and USDA loans to Dreamers buying homes in Florida, Illinois, Indiana, and Tennessee.

The U.S. Department of Agriculture guarantees USDA loans. DACA recipients can use one to purchase a home with a 0% down payment in rural America.



Schedule a time to talk with a mortgage expert at Newcastle Home Loans for details. 

Book time to talk


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

The down payment requirements for DACA recipients depend on several factors, including the lender's requirements, the type of mortgage, and the borrower's financial situation.

NewCastle Home Loans offers DACA recipients the same mortgage terms available to U.S. citizens when purchasing a single-family home, condo, townhouse, or 2-4-unit property

The minimum down payment for a single-family home, condo, or townhouse is 3% of the purchase price.


If the home's purchase price is $350,000, the minimum down payment is $10,500. However, some lenders may require a larger down payment from DACA recipients due to their immigration status.


The following chart shows how much 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


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


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


Talk to a lender familiar with your situation, which will help you understand your down payment options. 

Book time to talk


How much will a DACA mortgage cost?

Mortgage costs are the same for DACA recipients as U.S. citizens.

Costs vary depending on several factors, such as the down payment, repayment period, loan amount, type, rate, and fees associated with the mortgage.

Homebuyers can divide mortgage costs into two sets. First, you need cash upfront to cover the down payment and closing costs. Then, after closing, you make payments to the lender monthly.

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 to know what to expect when buying a home.


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.

View current rates


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 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 you have enough cash 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:


Marco's income recently increased.

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.


Isobel just started a new career.

Isobel 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 education. 


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 $15,000 to approve his home loan.



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. 

Get pre-approved


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.

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.

Get pre-approved


Mortgage tip for DACA home buyers

Work with a lender experienced with DACA mortgages to streamline the process and increase your chances of securing a mortgage.

Ask the lender upfront if they are familiar with DACA and understand the unique documentation requirements and potential challenges DACA recipients may face when applying for a mortgage.

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 stories behind previous DACA participants who received mortgages through NewCastle. View more Google reviews.

NewCastle Home Loans - Google Review

NewCastle Home Loans - Google Review

NewCastle Home Loans - Google Review

NewCastle Home Loans - Google Review

You can 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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