FHA Loans for Dreamers
May 8, 2021
A Hurdle for Dreamers
Prior to the waiver from the Secretary of HUD, DACA participants were unable to apply for FHA loans because of the language in place. Mortgages backed by the FHA were only available to “lawful residents” of the U.S. The term was established before DACA was put in place, which is why it doesn’t cover Dreamer status. This is what lead to Dreamers being unable to apply for government-backed mortgages. In fact, it was made clear in 2019 that the FHA would not insure home loans made to DACA status recipients.
Why This Matters
The exclusion of Dreamers from government-insured home loans created a hurdle for many potential homeowners. Most Dreamers are college-educated and employed. Many of them have worked to secure the American Dream of homeownership. While they have the finances in place to apply for a mortgage, the system in place did not grant them access to credit, keeping many of them from accruing wealth through real estate investments and obtaining proper housing.
With the new waiver in place, they have access to affordable FHA home loans designed for first-time homebuyers.
The Same FHA Guidelines
There is no discrepancy in the FHA’s eligibility requirements when it comes to DACA status holders applying for an FHA-backed mortgage. They must meet all the same criteria:
The home being purchased must be used as the borrower’s primary residence, and not serve as an investment property. Borrowers require a Social Security Number or Tax Identification Number to apply, except for individuals employed by the World Bank, a foreign embassy, or similar employer identified by HUD. They must be deemed eligible to work in the U.S., with an Employment Authorization Document issued by the USCIS. While there is no income check, all FHA applicants must have an established employment history of salaried jobs
In short, a Dreamer must satisfy the same guidelines, terms and conditions as those for U.S. citizens.
------------------------------
RELATED VIDEOS:
There's a Difference Between APR and Interest Rates
Choose Your Mortgage Lender Carefully
Getting Started With Your FHA Loan Application
FHA Loan Articles
November 2, 2024When it’s time to consider buying a home, the Federal Housing Administration (FHA) offers two popular options. One is the traditional FHA purchase loan many use to buy a house in the suburbs. But not everyone wants to buy an existing property. Some want more control over the design and configuration of the home.
The other FHA construction loan option, the one-time close mortgage, comes in here. This option is for those who want to approve floor plans, have a say in the types of materials used to build the home and choose its features.
October 31, 2024When buying a home for the first time, it helps to know how long the process can take. How do you know if your appraisal report is delayed if you don’t know how long the FHA allows for the process to be completed? How long does it take to get from the final offer to closing day? A “typical” FHA loan process may take up to 45 days from start to finish. Several factors can influence this timeline.
October 30, 2024Just because an FHA loan is designed to be more lenient with FICO scores and require a lower down payment doesn’t mean the house you buy with that loan is less than ideal. Did you know that FHA loans have minimum property standards to ensure the home is safe and livable? Those standards require the home to have an “economic life” for the entire term of the loan so you can freely sell the property later on if you choose to do so.
October 29, 2024Buying a home with an FHA mortgage is a major life decision, and preparation is essential before you start house hunting or consider making an offer on a property.
How to get started? In the early stages, establishing your budget and how much work you need to do on your credit is key. But once you have gotten past the initial phase of that planning you’ll want to consider the house itself and what you want from it.
October 25, 2024Mixed-use properties combine residential and commercial spaces. Some borrowers applying for FHA home loans want to know if purchasing such a property using an FHA single-family home loan is possible. The FHA does allow the use of its loans for mixed-use properties, but certain conditions must be met.
