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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 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:

  • Am I eligible for a mortgage if I’m in the DACA program?
  • Can DACA recipients get FHA loans?
  • Can DACA recipients get conventional loans?
  • What documents do I need for a DACA mortgage?
  • 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?

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?

DACA recipients are ineligible for FHA loans, but HUD’s policy might change soon.

Policymakers at the U.S. Department of Housing and Urban Development made it quite clear in a June 11 letter. In the letter, a HUD official wrote, “because DACA does not confer lawful status, DACA recipients remain ineligible for FHA loans.”

The letter also points out that the U.S. Congress, not HUD, has the authority to determine citizenship and immigration status. Congress introduced the Homeownership for Dreamers Act this month.

If the Act becomes law, DACA recipients will have access to FHA mortgages. Access to FHA mortgages would give people in the DACA program more options for safe, low-cost home loans.

 

Can DACA recipients get conventional loans?

DACA recipients are eligible for conventional loans.

Policymakers for conventional loans confirmed this month that DACA recipients are lawful non-permanent residents because they have valid Employment Authorization Documents. The Non-Citizen Borrower Eligibility guide outlines the requirements.

A government agency like FHA doesn't insure conventional loans. DACA recipients can use one to buy a 1-4 unit. The property must be your primary residence and you should have:

  • a 620 minimum credit score,
  • stable employment and income, and
  • enough cash for a 3% down payment for a single family home, condo, or townhome.
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.

Like everyone else who applies for a mortgage, you must qualify for the loan by meeting the lender’s requirements. The requirements include proving your income and that you have enough cash to buy the home.

  • 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.

Compare conventional loans. See live rates and monthly payments, including mortgage insurance. Our real-time mortgage calculator is 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 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, Michigan, and Tennessee. See our licensing page.

If you’re buying a home in a different state, then leave me a message including your phone number and email address, and 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 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:

 

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 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. 

Get Approved Now!

Conclusion.

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 at 773-770-4713 or apply online. We lend in Florida, Illinois, Michigan, and Tennessee.

Schedule a call with me and let's talk about your home loan.

Learn more: What Is DACA?

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. 

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