Is it possible to get home loans for DACA recipients in Houston, Tx? Read below to know about the history and eligibility of DACA loans.
Do you want to buy a house? But because you’re part of the Deferred Action for Childhood Arrivals program, you’re not sure what sort of loan you’re eligible for. When you have DACA status, you must be aware of the rules of a DACA mortgage loan to buy a home.
What does DACA stand for? Deferred Action for Childhood Arrivals is a type of administrative deportation reprieve. DACA was created to safeguard qualifying immigrant teenagers who arrived in the United States as minors from deportation. DACA provides young illegal immigrants with two benefits: 1) deportation protection and 2) a work permit. The program will end in two years unless it is renewed. Before you start looking for a loan you need to meet the requirements of home loans for DACA recipients in Houston, Tx.
DACA’s Background
After Congress failed to enact Obama’s Development, Relief, and Education for Alien Minors Act, the DACA program was founded. Its goal was to provide legal status to young immigrants in the United States. In the absence of congressional backing, Obama implemented DACA as a temporary stopgap via executive order.
The first DACA program, which began in 2012, was as follows:
- For a two-year period, young undocumented immigrants were able to escape deportation and get work permits.
- Created a renewable program based on good behavior that allowed certain immigrants to apply if they met the following criteria:
- On June 15, 2012, you must be under the age of 31.
- They arrived in the United States while they were under the age of 16.
- Since 2007, I’ve been a resident of the United States.
The Trump administration then spent years perplexing borrowers and lenders about what could and couldn’t be done after Obama left office. In June 2019, the Department of Housing and Urban Development announced that DACA participants will no longer be eligible for FHA home loans.
According to HUD, people designated as citizens without valid residency under the Deferred Action for Childhood Arrivals program were counted as citizens without lawful residency up to January 19.
The Trump Administration, however, overturned this stance on January 19, 2021. DACA participants were determined to be fully eligible for Federal Housing Administration loans. The Federal Housing Administration’s new policy should make it simpler for many Dreamers to purchase property in the United States.
What Documents Do You Need to Secure A Mortgage If You’re A DACA Recipient?
As a DACA applicant, you’ll need to provide these three papers when applying for a mortgage:
- Your SSN number.
- Because lenders anticipate USCIS will extend your DACA status, you’ll need your previously expired EAD card.
- USCIS’s most recent EAD card
You’ll also need to establish that you have a steady salary and a bank account balance to indicate that you can purchase a property.
The good news is that owning a house in the United States is doable for DACA recipients. Finding a mortgage will not be simple, but it is feasible. So, when you’ve found a property and applied for a mortgage, you’ll want to take advantage of any available help programs and save money for your down payment.
