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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

In a new move, the Federal Housing Administration (FHA) announced that it will permit individuals protected under the DACA (Deferred Action for Childhood Arrivals) program to apply for mortgages backed by the FHA, effective January 19th, 2021. The FHA permits DACA recipients to apply in a move that reverses the previous stipulation that barred “non-US citizens without lawful residency” from applying for FHA-insured mortgages. 

DACA recipients, or “Dreamers” as they are commonly known, will now be able to realize their dreams of homeownership. FHA-backed loans are hugely popular because they carry a multitude of benefits, such as a small minimum down payment, lower credit score requirements, and higher debt-to-income ratios. They are great options for first-time homebuyers. 

Check out the 2021 FHA loan limits here.

Dreamers will have to abide by the same FHA requirements as other borrowers: 

  • The property must be the borrower’s principal residence
  • The borrower must have a valid Social Security number, except for those employed by the World Bank, a foreign embassy, or an equivalent employer identified by the Department of Housing and Urban Development
  • The borrower must be eligible to work in the U.S., and can provide an Employment Authorization Document (EAD) issued by the U.S. Citizenship & Immigration Service (USCIS) – DACA recipients are legally permitted to work in the U.S.
  • The borrower must satisfy the same requirements, terms, and conditions as those set for U.S. citizens

Learn everything you need to know about FHA loans – from eligibility to applying – here. 

This is yet another piece of good news for prospective homebuyers! The FHA permitting DACA recipients to apply opens up the dream of homeownership to countless individuals across the nation. FHA loans are very easy to qualify for and are a great option for first-time homebuyers. If you’re looking to kickstart your journey to homeownership, get started by getting a rate quote.