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?

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

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

Similarly, the U.S. Department of Agriculture (USDA) no longer allows DACA recipients to qualify for its loan program. (USDA LINC Training & Resource Library)

 

What does this mean for Dreamers?

Although conventional loans are still available to DACA recipients, the recent changes to FHA and USDA guidelines have had ripple effects.

Some large banks and lenders have tightened their internal policies, becoming more conservative when approving mortgage applications from DACA recipients.

That means you may run into lenders who won't accept your application, even for a conventional loan.

 

We're here to help

At NewCastle Home Loans, we continue to offer conventional mortgages to DACA recipients with the same terms, interest rates, and requirements as U.S. citizens.

Suppose you can legally live and work in the United States and meet the standard loan criteria. In that case, we'll help you qualify—no extra hoops.

To apply, 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."
   

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 loans to Dreamers buying homes in Florida, Illinois, Indiana, and Tennessee.

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

 

 

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

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

However,  your exact down payment may vary depending on several factors, such as the type of property, whether you'll live there, your financial situation, and the lender's specific requirements.

At NewCastle Home Loans, we offer DACA recipients the same low down payment options as U.S. citizens. That includes just 3% down for qualifying buyers purchasing a primary residence, such as a single-family home, condo, or townhouse.

 

 

Suppose you're buying a 2–4 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?

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 monthly payments to the lender.

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 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.