Options for mortgage loans for Dreamers have increased. When the Federal Housing Administration (FHA) announced that it would permit individuals protected under the DACA (Deferred Action for Childhood Arrivals) program to apply for FHA mortgages, the dream of homeownership became that much more accessible to countless around the country.
FHA-backed mortgages join the list of mortgage loans for Dreamers, as they are commonly known. Dreamers are also eligible for conventional loans, or mortgages acquired by Fannie Mae and Freddie Mac. Conventional loans bring the benefit of being widespread – almost all lenders offer them, and they come without any special eligibility requirements. In addition, conventional loans are also popular for their low rates.
In November 2020, the Federal Housing Finance Agency (FHFA) announced the new 2021 conforming loan limits for conventional mortgages. Like other borrowers, Dreamers qualify for up to $548,250 for one-unit properties and up to $822,375 in high-cost areas.
In terms of FHA loans, Dreamers qualify for up to $356,362 for one-unit properties and up to $822.375 in high-cost areas.
With the landmark FHA decision, your options for owning a home as a Dreamer only get better! The different mortgage loans for Dreamers come with a myriad of benefits: FHA loans are very easy to qualify for, and conventional loans are widespread and come with super low rates. The current low rates and the new higher loan limits create a perfect environment for homebuying. Higher loan limits mean that you are eligible to borrow up to an amount that reflects the housing market around you, thereby increasing your buying power. If you are looking to take advantage of this environment and realize your dreams of homeownership, you can kickstart your journey by getting a rate quote.