FHA Now Allows Loans for DACA Recipients
The Department of Housing and Urban Development (HUD) has announced that effective immediately, people who are classified under the Deferred Action for Childhood Arrivals program (DACA) and who are legally permitted to work in the US, are now eligible to apply for FHA mortgages.
Here are the details.
Other FHA requirements remain in effect for all potential borrowers including DACA status recipients:
- the property will be the borrower’s principal residence;
- the borrower has a valid Social Security Number (SSN), except for those employed by the World Bank, a foreign embassy, or equivalent employer identified by HUD;
- the borrower is eligible to work in the U.S., as evidenced by the Employment Authorization Document issued by the U.S. Citizenship & Immigration Service (USCIS); and
- the borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens.
The Employment Authorization Document is required to substantiate work status. If the Employment Authorization Document will expire within one year and a prior history of residency status renewals exists, the lender may assume that continuation will be granted. If there are no prior renewals, the lender must determine the likelihood of renewal based on information from the USCIS.
A borrower residing in the U.S. by virtue of refugee or asylee status granted by the USCIS is automatically eligible to work in this country. The Employment Authorization Document is not required, but documentation substantiating the refugee or asylee status must be obtained.
DACA recipients are also allowed to apply for conventional mortgages that will be sold to Fannie Mae.
Contact us today for information about getting a pre-approval for a purchase transaction or to refinance your current mortgage.