Mortgage Guide

How to get a home loan

How to get a DACA mortgage to buy a home

Jim Quist is the President and Founder of NewCastle Home Loans. Jim has worked in the mortgage industry for over 20 years. His goal is to help home buyers find the information they need to close on their home purchase with confidence.

learn more >>

You want to buy a home, but the bank denied your mortgage application because you’re in the Deferred Action for Childhood Arrivals program.

Don’t give up on your dream of home ownership. I’ll show you how you can get a loan to buy a home when you have DACA status. Read this article for answers:

COVID-19 hasn't stopped us. We've closed more home loans in 2020 for DACA recipients than we did last year.  Need a DACA loan fast? Follow the steps in the last section of this article to see how you can get approved in 2-day and close in 15-days. You can also call me directly at 855-610-1112 or apply now online.


Am I eligible for a mortgage if I’m in the DACA program?

Yes. You can get a mortgage if you’re in the DACA program, but your options for financing are limited. Your DACA status makes you ineligible for certain types of loans.

A lawful, non-permanent resident is eligible for most types of mortgages, including FHA and conventional loans. If you prove that you’re a legal resident of the U.S., then you meet the residency requirement.

However, DACA is ambiguous, the agencies that set policies for loan programs interpret it differently, and according to some mortgage policymakers, DACA doesn’t prove that you’re a lawful resident of the U.S.


Can DACA recipients get FHA loans?

No. DACA recipients are ineligible for FHA loans because HUD said so in a June 11, 2019 letter. The HUD official wrote, “because DACA does not confer lawful status, DACA recipients remain ineligible for FHA loans.”

Private lenders, like NewCastle Home Loans, follow HUD's rules. Let me explain. You apply for an FHA loan with a lender - a bank, credit union, or mortgage company. The lender is responsible for making sure your loan meets certain standards set by the Federal Housing Authority (FHA). The FHA is part of HUD, the Department of Housing and Urban Development. HUD makes the rules for the FHA loan program. 

The letter also points out that the U.S. Congress, not HUD, has the authority to determine citizenship and immigration status. This means if you're DACA you can't get an FHA loan until the U.S. Congress clarifies your residency status to the bureaucrats at HUD. Presently, Congress is working on the Homeownership for Dreamers Act. If the Act becomes law, DACA recipients will have access to FHA mortgages, giving you more options for home loans.

When compared to other mortgages, an FHA loan, would help you buy a home when you have a small down payment or your credit isn't very good. For example, with an FHA loan you could buy a 1 to 4 unit home with a down payment of only 3.5% and with a credit score as low as 580. 


Can DACA recipients get conventional loans?

Yes. DACA recipients are eligible for conventional loans. Policymakers confirmed it in June of 2019. The Non-Citizen Borrower Eligibility guide provides more details, including examples of acceptable documentation. 

DACA Mortgage Fannie Mae-1DACA recipients can use a conventional loan to buy or refinance a 1 to 4 unit home. The property must be your primary residence and you must have:
  • a down payment of at least 3% for a single family home
  • a 620 or higher credit score
  • stable employment history and income that’s likely to continue.
See if you qualify!


What documents do I need for a DACA mortgage?

Provide the lender with the following documents to verify your residency and work status: 

  • Social Security Number. 
  • Current Employment Authorization Document (EAD card) issued by the U.S. Citizenship and Immigration Services (USCIS) with C33 category.
  • Previous expired EAD card. Lenders will assume that the USCIS will continue to renew your residency status.

DACA Mortgage EAD C33Like everyone else who applies for a mortgage, you must prove to the lender that you can handle the monthly mortgage payments and that you have enough money to buy the house.  

  • Income documents show that you can afford the mortgage payments. Depending on your job, the lender will typically want copies of your pay stubs, W-2 statements, and federal income tax returns.
  • Bank account balances confirms that you have enough money to buy the home. Provide your most recent statements covering two months.

Use our Mortgage Calculator to see live rates and monthly payments, including mortgage insurance. It's a free too that shows you how much it will cost to buy a house.


Where do I find a mortgage lender offering DACA home loans?

Before you apply for a mortgage, ask the loan officer if the bank will approve borrowers with DACA status. By asking upfront, you’ll avoid more significant problems later. If the bank says no, and many will deny applications from DACA participants, then check with a different lender.

Many banks and lenders do DACA loans, but it’s not always easy to find them. NewCastle Home Loans offers conventional mortgages to home buyers who are in the DACA program. We’re lending in Florida, Illinois, Indiana, Michigan, and Tennessee. See our licensing page.


Get approved in 1-day, close in 10-days.

At the beginning of this article I promised to show you, step-by-step, how to get approved in 1-day and close in 10-days.

You might need to close quickly because the bank turned you down a few weeks or even days before you were scheduled to close. Unfortunately, we hear the stories too often about people losing their dream homes and their earnest money.

Stop worrying and start enjoying the American dream of home ownership. We can make it happen just like we did for so many DACA home buyers. Check our Google reviews to see their stories. Then follow our 3-step closing plan to get approved:

DACA Mortgages NewCastle Home Loans

1. Apply online.

Answer the questions in the Declarations section of the Loan Application correctly:

  • j. Are you a U.S. citizen? No.
  • k. Are you a permanent resident alien? No.
Get an automated approval in about 15-minutes. Our application will automatically:
  • Check your credit history.
  • Sync with your bank to import your bank statements.
  • Allow you to choose a conventional loan, the interest rate, and monthly payment.


2. Get an Approved Buyer Cert within 1-day.

NewCastle’s Approved Buyer Cert is a real mortgage loan approval, and you can get one quickly and easily online, right now, even before you shop for a home. All you have to do is:

  • Upload your documents to our secure Loan Dashboard.
  • Our loan underwriter verifies your info and confirms that you meet the loan eligibility requirements.
  • Lock-in a low-interest rate and payment.


3. Close in 10-days.

  • Talk with one of our home loan experts so that we can help you set a realistic closing date. 
  • We will process your documents, commit to your mortgage, and prepare to close within 10-days.
  • Close your loan, move in to your new home, and move on with your life. 

Get Approved Now!



For now, DACA participants are ineligible for FHA backed loans. You can use a conventional loan to buy a home as long as you can document that you’re legally present and eligible to work in the U.S. Also. you must qualify for the loan by meeting the lender’s requirements.

Ask before you apply because some banks don't do mortgages for people in the DACA program. If your bank turned you down and you need to close quickly, then call me now at 855-610-1112 or apply online. We lend in Florida, Illinois, Indiana, Michigan, and Tennessee.

Do you have questions? Schedule a 15-minute call with me. 

Would you buy a home if you could get an FHA loan? Did a bank turn you down because or your DACA status? Share your comments below. 

You may also like:

How to lock-in a low mortgage rate

This article answers: what is rate lock? How long is the rate lock period? How do I lock my mortgage rate? What if rates drop after I lock? Can I get an extension?

Can I get a mortgage if I owe federal tax debt to the IRS?

You don't need to pay off the entire IRS tax debt you owe in order to qualify for a mortgage. You will just need to meet certain loan requirements.

Can I get approved for a mortgage with income from the marijuana industry?

With jobs in the cannabis market increasing, what happens if you want to buy a home and work for one of these state-legal businesses? Well, it gets tricky. Because, at a ...


Buying a home and don't know where to start?


Our weekly email will supply you with homebuyer and mortgage basics to make the process simple.