New DACA Rules Permit FHA Mortgages for Dreamers
Effective as of January 19, 2021, the Federal Housing Administration (FHA) is permitting “Dreamers” – individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration Service (USCIS) and are legally permitted to work in the U.S.- to apply for mortgages backed by the FHA. Click here to apply for a mortgage now with Steven Amezquita.
Since 2003, FHA has only allowed non-US citizens with lawful residency to apply for FHA-insured mortgages. The term “lawful residency” pre-dates DACA and did not anticipate a situation in which a borrower might not have entered the country legally, but could be considered lawfully present.
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 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 expires 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.
Robert Butler and his team have experience helping people buy real estate regardless of immigration status. This new rule clarification from FHA adds yet another option for DACA participants. Robert and his team are fluent in Spanish. Click here to apply for a mortgage now with Steven Amezquita. Dreamers are welcome!
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