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6 min read Jun 04, 2023

DACA Home Loans: Opening Doors to Homeownership

DACA home loans refer to mortgage programs available to individuals who are beneficiaries of the Deferred Action for Childhood Arrivals (DACA) program.

The dream of owning a home is a significant milestone for many individuals and families. For undocumented individuals protected under the Deferred Action for Childhood Arrivals (DACA) program, homeownership may have seemed out of reach.

However, with the emergence of DACA loans, the path to owning a home has become more accessible. In this blog, we will explore how DACA home loans are empowering Dreamers by providing them with the opportunity to achieve the American dream of homeownership.

DACA FHA Loan Eligibility

As of my knowledge cutoff in September 2021, DACA recipients are not eligible for FHA (Federal Housing Administration) loans. The FHA loan program requires borrowers to have lawful residency status in the United States, and DACA recipients have temporary protection from deportation but do not have lawful residency. It’s essential to consult with a qualified mortgage lender or an immigration attorney for the most up-to-date information on DACA FHA loan eligibility, as immigration policies and lending guidelines can change over time.

DACA FHA Requirements

As of my knowledge cutoff in September 2021, DACA recipients are generally not eligible for FHA (Federal Housing Administration) loans due to the requirement of lawful residency status. However, it’s important to note that FHA guidelines can change, and there may be updates or revisions to eligibility criteria.

For the most accurate and up-to-date information regarding DACA FHA requirements, it is recommended to consult with a qualified mortgage lender.

Other DACA Home Loan Options

While DACA recipients may not be eligible for FHA loans, there are alternative home loan options that they can explore. These options are offered by certain lenders who are willing to work with DACA recipients.

Here are a few alternative DACA home loan options to consider:

  1. Conventional Loans: Some conventional loan programs may be available to DACA recipients. These loans are not insured by the government, like FHA loans, but they are provided by private lenders. Requirements and eligibility criteria for conventional loans may vary among lenders. Hence, it’s important to research and reach out to lenders who offer these programs.
  2. Non-Qualified Mortgage (Non-QM) Loans: Non-QM loans are mortgage products that don’t meet the qualified mortgage standards set by the Consumer Financial Protection Bureau (CFPB). These loans are offered by certain lenders who are willing to consider alternative factors such as employment history, and income stability, rather than strict residency requirements.
  3. Community Lending Programs: Some local or community-based lenders offer specialized lending programs for DACA recipients. These programs may have more flexible requirements and can be tailored to meet the unique needs of DACA recipients seeking homeownership. Researching and connecting with community organizations, housing agencies, or nonprofit lenders can help identify such programs.
  4. State and Local Assistance Programs: Certain states or local jurisdictions offer homeownership assistance programs that are inclusive of DACA recipients. These programs may provide down payment assistance, closing cost grants, or other forms of financial support to help DACA recipients. Researching state and local housing agencies or consulting with housing counselors can provide information on these programs.

It’s important to note that the availability and terms of these alternative DACA home loan options may vary depending on the lender, state, and local regulations. It is advisable to consult with mortgage lenders who specialize in working with DACA recipients or seek guidance from housing counselors or immigration attorneys who can provide tailored advice based on the most current regulations and lending options.

Pros and Cons of DACA

Pros of DACA:

  1. Protection from deportation: DACA provides temporary protection from deportation for eligible individuals, allowing them to live, work, and study in the United States without fear of being removed from the country.
  2. Work authorization: DACA recipients receive authorization to work legally in the United States, enabling them to pursue employment opportunities, contribute to the economy, and support themselves and their families.
  3. Access to education: DACA allows eligible individuals to enroll in educational institutions, access in-state tuition rates in certain states, and apply for scholarships and financial aid, making higher education more attainable.
  4. Social integration: DACA provides an opportunity for individuals who arrived in the U.S. as children to integrate into American society, build relationships, and contribute to their communities.
  5. Driver’s licenses and identification: DACA recipients are eligible to obtain driver’s licenses and state identification, which can enhance mobility and facilitate everyday activities.

Cons of DACA:

  1. Temporary protection: DACA offers temporary relief from deportation, and its future remains uncertain. The program can be subject to changes or termination, leading to uncertainty and anxiety for DACA recipients.
  2. Limited benefits: DACA recipients are not eligible for federal benefits such as Medicare, Medicaid, or Social Security. They also do not have access to federal student aid, limiting their financial support for higher education.
  3. Incomplete path to citizenship: DACA does not provide a direct path to citizenship. It does not confer permanent legal status or a guaranteed route to obtaining a green card or citizenship.
  4. Limited travel opportunities: DACA recipients face restrictions on international travel. They must apply for and receive advance parole to travel outside the United States, and even with approval, there can be risks and uncertainties associated with international travel.
  5. Vulnerability to policy changes: As DACA is an executive program, it is subject to changes in administration and policy. Alterations in immigration policies or legal challenges can impact the program, creating uncertainties for DACA recipients.

It is important to note that these pros and cons are not exhaustive, and individual experiences and perspectives may vary. The impact of DACA can depend on various factors such as personal circumstances, state laws, and policy changes.

Bottom Line

DACA home loans have transformed the landscape of homeownership for Dreamers, bridging the gap between their aspirations and the practical challenges posed by their immigration status. By providing access to mortgage financing and recognizing the contributions of DACA recipients, these loans empower Dreamers to achieve their dreams of owning a home, fostering stability, and building a brighter future for themselves and their communities.

As we continue to strive for inclusivity and equal opportunities, DACA home loans stand as a beacon of hope, exemplifying the power of financial solutions in creating a more inclusive society.

Frequently Asked Questions

Do daca recipients qualify for fha loan?

No, DACA recipients do not qualify for FHA loans, as FHA loans require borrowers to have lawful residency status in the United States.

Who is eligible for daca?

Eligibility for DACA (Deferred Action for Childhood Arrivals) includes individuals who arrived in the United States as children, have continuously resided in the country since June 15, 2007, were under the age of 31 as of June 15, 2012, and meet other specific requirements outlined by the program.


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