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Mortgage Guide

How to get a home loan

How to get a DACA mortgage to buy a home


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

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

  • Am I eligible for a mortgage if I’m in the DACA program?
  • What documents do I need for a DACA mortgage?
  • Can DACA participants get FHA and conventional home loans?
  • Where do I find a lender offering DACA home loans?

Need a DACA loan fast? Follow the steps in the last section of this article to see how you can get approved in 1-day and close in 10-days. You can also call me directly at 773-770-4713 or apply now online.

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

A lawful, non-permanent resident is eligible for a mortgage under the same terms available to U.S. citizens. People in the Deferred Action for Childhood Arrivals (DACA) program are legal, non-permanent residents of the U.S.

So, yes, you can get a home loan while you’re in the DACA program, as long as you can prove you’re here legally and allowed to work.

What documents do I need for a DACA mortgage?

You will need to provide the mortgage lender with the following documents to verify your residency and work status:

  • Social Security Number (SSN). Don’t worry if it reads “not valid for work purposes.” Lenders don’t use your Social Security card as evidence of your work status.
  • Current Employment Authorization Document (EAD) issued by the U.S. Citizenship and Immigration Services (USCIS).
  • Previous expired EAD Card. Lenders will assume that the USCIS will continue to renew your residency status. Here’s a sample of an EAD card:

daca mortgage ead card

daca mortgage ead card back

Like everyone else who applies for a mortgage, you must qualify for the loan by meeting the lender’s eligibility requirements. Mortgage lenders require a credit score of at least 580 and documents verifying your income and that you have cash in the bank.

  • Your income documents will 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.
  • Your bank account balance confirms that you have enough money to buy a home. Provide your most recent statements covering two months.

Can DACA participants get FHA and conventional home loans?

Yes. In fact, they are eligible for both.

DACA participants are eligible for FHA loans. An FHA loan is a good option if you have steady employment for the past 2-years, but you have a small down payment and your credit score is less than 680. Here are the requirements:

  • 580 minimum credit score.
  • 3.5% down payment on a 1-4 unit property.
  • Lower interest rate and payment than a conventional loan.

DACA participants are eligible for conventional loans too. Consider a conventional loan when your credit score is 680 or higher. Here are the requirements:

  • 620 minimum credit score.
  • 3% down payment with a 680 or higher credit score.
  • Cheaper mortgage insurance premium than an FHA loan.

For both mortgage options, you must live in the home as your primary residence. You can’t use the mortgage to buy a vacation or investment property.

You can compare FHA and conventional loans now. On that page, scroll down and use our mortgage calculator to see live rates and monthly payments, including mortgage insurance. It’s a free tool 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 most will deny applications from DACA participants, then check with a different lender.

Many banks and lenders do DACA loans, but it’s not easy to find the good ones. Most don’t advertise, so you’ll need to shop around. By shopping around, you’ll likely end up with a lower payment and a better customer service experience.

NewCastle Home Loans is one of the lenders offering FHA and conventional mortgages to homebuyers who are in the DACA program. We’re lending in Florida, Illinois, Michigan, and Tennessee. See our licensing page for more information.

If you’re buying a home in a different state, then call or message me at 773-770-4713. I’ll direct you to a bank that can help you.

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 a 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 homeownership. We can make it happen just like we did for so many DACA homebuyers. Feel free to browse our Google reviews to hear the stories of homeowners we’ve helped in your exact situation.

All you have to do is follow our 3-step closing plan to expedite your mortgage approval:

1. Apply online.

When you apply for a mortgage, 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.

 

You can 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 an FHA or 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 information 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. 

See if you qualify!

Conclusion.

DACA recipients are eligible for both FHA and conventional mortgages. As long as you can document that you’re legally present and eligible to work in the U.S., then you can get a loan to buy a home.

Be careful choosing a lender because only some do DACA mortgages. Ask before you apply. If your bank says no, begin shopping around.

If you’re buying a home in Florida, Illinois, Michigan, or Tennessee, then call me at 773-770-4713 or apply online, especially if the bank turned you down and you need to close quickly.

If you want to learn more about DACA, read the AS/COA’s Explainer: What Is DACA?

Schedule a 30-minute call so that I can help you buy a home.

See if you qualify!

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