Can DACA Recipients Buy a House?
This is a question that is getting asked more frequently in these politically charged times for DACA (Deferred Action for Childhood Arrivals) recipients. Good news is that yes! it is possible to purchase a home with a DACA status. It is estimated there are over 700,000 people in the DACA program. That’s a huge number of folks in the US ready to participate in the american dream of home ownership.
Fannie Mae’s Non–U.S. Citizen Borrower Eligibility Requirements
Fannie Mae purchases and securitizes mortgages made to non–U.S. citizens who are lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens. Fannie Mae does not specify the precise documentation the lender must obtain to verify that a non–U.S. citizen borrower is legally present in the United States. The lender must make a determination of the non–U.S. citizen’s status based on the circumstances of the individual case, using documentation it deems appropriate. By delivering the mortgage to Fannie Mae, the lender represents and warrants that the non–U.S. citizen borrower is legally present in this country.
Not all mortgage products are created equally. Your credit score, non-expired documents and more will play into how favorable a mortgage you may qualify for. I have worked with folks in these situations and seen some great mortgage loans for those that have done some financial groundwork first.
My understanding is that if you have an unexpired Employment Authorization Card AND a valid Social Security Number or Individual Taxpayer Identification Number, you qualify for a mortgage under the same terms available to a U.S. Citizen. As these are the only two items that are required to prove legal residency according to Fannie Mae. Not all mortgage lenders are familiar with offering loans for DACA so you’ll want to find someone who is. The rules above apply to Fannie Mae Conforming Mortgages, so when you are talking to lenders, let them know this is the type of financing you would prefer.
I have experience with two lenders that are familiar with DACA recipient loans.
Laura Cortes, nmls #1095228, Loan Officer with SecurityNational, says that all non-permanent and DACA residents are required to provide a two year documented work and income history with a probability of continued employment. DACA applicants also have the same credit requirements as any other borrower. Their work permit or non-permanent resident card has to be valid at the time of loan closing.
According to Laura. the only difference is that DACA holders are only qualified for conventional loans at this time. SecurityNational has conventional loan options with as little as 3% down payment in any area around Portland. Unfortunately, DACA recipients do not qualify for down payment assistance programs but they can get a gift for down payment and they can also ask the seller to contribute towards closing if they need additional help.
Mortgage Cafe NW have consistently found favorable loan terms for my clients over the years. Here is Adrian Hinckley, nmls #264845, Mortgage Originator with Mortgage Cafe’s lender talking about options for DACA holders and the best ways to put yourself in a successful position for purchasing a home.
As a bilingual spanish-speaking real estate broker I find my ability to communicate clearly and effectively with every family member makes the home buying process so much easier. I’m only a phone call away at (503) 951-8548 if you’d like to talk more about how I can help you purchase a home.