DACA & Home Ownership
HOME OWNERSHIP IS A DREAM FOR MOST PEOPLE NO MATTER WHERE YOU ARE ON THE GLOBE. THERE ARE SO MANY PATHS TO HOMEOWNERSHIP FOR US born citizens and naturalized CITIZENS IN MOST COUNTRIES, BUT WHAT ABOUT THOSE IN DIFFERENT STAGES OF CITIZENSHIP OR non-citizens who are residents of Oregon?
DACA has enabled paths for a lawful presence in America for those eligible but how does that affect becoming a homeowner when you are a DACA recipient or Dreamer?
To begin, regardless of your residential status in the U.S., there are virtually no limits on who can buy and own property in the U.S. which means DACA recipients and even undocumented people may buy homes. And while securing a mortgage is a slightly different situation, there are assistance programs available to help with the purchase of a home.
In the past, this situation was a bit ambiguous. With the DACA program, the home loan situation was quite frankly, challenging to find loans at fair rates if you could find them at all. Agencies that create policies for loan programs interpret the DACA system differently, so they have different ways of approaching DACA recipients. Political uncertainty has also played a role, as different administrations and congresses take differing opinions of the program. All of this makes it harder for lenders to say “yes”.
BUT TIMES ARE CHANGING AND TO BE CLEAR, YOU DO HAVE MORE OPTIONS NOW.
Some of these options include FHA loans, non-specific home buying programs such as the National Homebuyers Fund and private home loans. Effective January 19, 2021, the FHA announced that individuals residing in the United States under the Deferred Action for Childhood Arrivals (“DACA”) program who are legally permitted to work in the United States are eligible to apply for FHA-insured mortgages. We are pleased to celebrate this change in government attitude (read more here).
Working with the right lender is definitely the key to success in securing a DACA mortgage, as you will want someone who is both knowledgeable and experienced in processing these types of loans. We are pleased to say that Francisco can point you in the right direction with lenders who specialize in loans for DACA recipients and ITIN loans.
ONCE YOU FIND THE RIGHT PEOPLE TO WORK WITH, THE PROCESS IS SIMPLY PAPERWORK.
These are the documents that you need if you are applying for a loan specifically as a DACA recipient: Social Security number, current Employment Authorization Document (“EAD card”- which is issued by the United States Citizenship and Immigration Services and the card should have a C33 category) and previous EAD cards that may have expired.
Next you’ll need to prove to the lending agent that you can handle the loan payments and that you have enough income for the house. Basic income documents are the first step. The agent or lender will want to see copies of pay stubs, W-2 statements, federal income tax returns, and other forms of information that establish your income. You may also bring bank account statements that display the balances on your accounts. The most recent statements covering two months of information will be useful for finalizing the loan application.
By being prepared and choosing the right loan, DACA recipients and even ITIN holders can get into the American dream of homeownership.
Here is more information about DACA home loans and what is needed to qualify:
ABOUT FRANCISCO SALGADO
An expert at finding solutions in the home buying and selling process, Portland real estate broker Francisco Salgado takes great satisfaction in helping all people fulfill their home ownership dreams. Contact Francisco so he can help you dig where you live, 503-951-8548.