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Mortgages For DACA Status Recipients (FHA & Conforming); Honey vs. Vinegar

family of four sit on the couch looking at a laptop to read about how DACA status recipients can indeed obtain both FHA and conforming mortgage loansCan DACA Recipients Get a Mortgage?

FHA now allows DACA recipients to obtain FHA mortgages.

DACA stands for Deferred Action for Childhood Arrivals.

You can read more about DACA here, but it mostly refers to people who immigrated to the United States as children without legal immigration status.
As adults, these DACA status recipients can now obtain both FHA and CONFORMING (Fannie Mae only) mortgage financing if they meet standard qualifications.

DACA FHA Home Loan Requirements

DACA borrowers who apply for an FHA loan will need the following items to qualify. The FHA requirements for DACA recipients are largely the same for applicants regardless of DACA status, however, there are a few specific items that the DACA status borrower will need to provide in their FHA mortgage application.

  • Down Payment: the minimum down payment required for a FHA loan is 3.5% down and the borrower will need a minimum credit score of 580 regardless of DACA status.
  • Primary Residence: The property must be used as the primary residence of the borrower (meaning this can not be used for investment properties or a second home).
  • Social Security Number (SSN): Similar to other applicants, DACA recipients will need to provide a SSN for their loan application.
  • Employment Authorization Document (EAD): DACA status borrowers must be eligible to work in the U.S. and will be asked to provide their Employment Authorization Document (EAD). This EAD must be issued by the U.S. Citizenship and Immigration Services. The mortgage lender may also need any previously expired EAD cards.

HONEY VS. VINEGAR

We had a quick-close purchase last week that was delayed solely and only b/c escrow did not get us a very necessary condition we had to have to close, despite our begging and prodding.

Even though we had no control over this, the selling agent was so angry that I got involved.

I explained that the delay was beyond our control and that funding the loan without the condition would subject us to the enormous risk of having an unsalable loan (that could easily cost us $50,000 or more).

He clearly did not care and became more abusive, so I simply made my case and offered to also call the listing agent b/c “she was even more upset,” according to the selling agent.

When I called the listing agent and explained what happened and offered to pay a per diem as a courtesy, she said this:

“Oh honey, that will not be necessary; my sellers are school teachers is all and I want to make sure we accommodate their schedules. Please just let me know exactly when we can close so I can let everyone know…”

In other words, she was utterly charming and professional.

So, what did we do?

Despite having over 250 other pressing transactions in our pipeline, we went to the ends of the earth and took an enormous risk to fund her listing on time.

We of course can’t do this every time b/c the risks and costs are often much greater than what most people outside our industry understand, but it is a great reminder that honey often gets us much farther than vinegar. 😊

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167