The Federal Housing Administration (FHA) recently updated their policies to allow home loan financing for those in the Deferred Action for Childhood Arrivals (DACA) program, who were previously ineligible.
DACA recipients, also known as Dreamers, must possess the following criteria for loan approval:
- A valid Social Security number (SSN)
- Eligibility to work in the United States, as evidenced by an unexpired Employment Authorization Document issued by the U.S. Citizenship and Immigration Service (USCIS)
- Meet the same program requirements as any U.S. citizen (such as credit score, debt-to-income ratio, etc.)
Permitting loans for DACA recipients is a major advancement in the mortgage lending industry because it means more individuals and families have access to homeownership – a dream many of us hope to achieve someday. Plus, FHA loans are a fantastic option for many homebuyers as they boast low down payment and credit score requirements.
FHA Loan Benefits
FHA loans are backed by the Federal Housing Administration. The FHA provides a safety net in the event the homeowner fails to pay back their mortgage loan, which means mortgage lenders can offer these home loans with less stringent requirements.
Some basic benefits of FHA loans include:
- Down payment as low as 3.5%
- FICO (credit score) as low as 620 (see how your credit score is determined)
- Renovation loan options – finance your mortgage and any renovations you plan to make upfront
Other Mortgage Loan Resources for Dreamers
Are you a Dreamer and just starting your journey to homeownership? Take a look at some additional resources to help get you started.
Info for First-Time Homebuyers
Our First-Time Homebuyers page is the perfect place to start if you’ve never purchased a home before. Here you’ll find FAQs, an outline of the mortgage process, helpful tools and calculators, and more.
The first step to buying a house is getting pre-approved. Take a look at our Benefits of a Mortgage Pre-Approval blog post to learn why it’s such an essential step.
How to Save for a Down Payment
FHA loans require a down payment of at least 3.5%. It might be a little intimidating to jump into saving any large amount of money, so be sure to check out our How to Save for a Down Payment on a House blog article first for some helpful tips. It’s not as tricky as you might think!
How to Build Credit from Scratch
You’ll notice a lot of talk about your credit score when going through the home loan process. If you don’t have a credit score, that doesn’t necessarily mean you can’t get a mortgage – but it is an important piece of the puzzle in most situations. Head to our blog for tips and tricks on How to Build Credit When You Have None.
The Homebuying Process Step-by-Step
Want a high-level overview of the homebuying process? Check out our 10 Steps to Buying a House blog article for all the info.
Find a Loan Originator
For the best, most timely info that’s pertinent to your unique situation, the best thing you can do is chat with a skilled mortgage loan professional. Find a Waterstone Mortgage loan originator in your area to get started today.