Many people would consider owning their own home to be the embodiment of the American dream. That’s why it’s so important for those who fall under the label of DREAMers, or those who are DACA recipients, to have their own part of the American dream through owning a home. Luckily, DACA recipients can own a home and the process is relatively simple and very similar to the normal home buying process.
What is DACA?
DACA, or Deferred Action For Childhood Arrivals, is a program that was put in place in 2012 via executive order by the Obama administration when the DREAM Act did not pass in Congress. DACA was created to provide protection for undocumented individuals who came to the US before the age of 16, so they would not be deported back to their country of origin. DACA also allows recipients to go to school and work legally as long as their DACA status is renewed every two years. According to estimates, there are nearly 700,000 DACA recipients in the US who are enrolled in school or actively contributing to the workforce and economy.
Can a DACA Recipient Buy a Home?
According to the Fair Housing Act, it is illegal to discriminate against individuals based on their immigration status (and many other factors) in terms of purchasing a home. DACA recipients can purchase a home, and the steps to purchase are nearly the same as those with citizenship. The main difference is the need to provide additional paperwork during Step 2 of our Buyer flowchart above. We cover this additional paperwork in our section titled “What Are The Requirements?” below.
What Mortgage Loans Do DACA Recipients Qualify For?
As of January 2021, DACA recipients qualify for FHA, Federal Housing Association, loans, in addition to the conventional mortgage loans that they have always qualified for. FHA loans are often chosen by first-time homebuyers for their accessibility. They require lower down payments and are more accommodating to applicants who may be rejected by other lenders with stricter requirements. For more information about DHA and how to find lenders, follow this link.
DREAMers also qualify for conventional loans from private lenders, provided they offer loans to DREAMers. In Illinois, there are a few lenders that openly state that they offer mortgage loans to DREAMers. These lenders are:
- Fannie May’s HomeReady Loan – Fannie May, otherwise known as the Federal National Mortgage Association, is a government back loan program that offers a variety of loan options. They offer their HomeReady Loan to DACA recipients who can provide an SSN, a tax ID number, or current EAD documentation and proof of consistent income through pay stubs, a W-2, or bank statements. Additional information, with instructions on how to apply, is available here.
- NewCastle Home Loans – NewCastle Home Loans is a private lender that is located in Chicago, IL, and offers home loans to DACA recipients located in Illinois, Indiana, Michigan, Tennessee, and Florida. More information about their mortgage lending to DACA recipients, a mortgage calculator to see your approximate rate, and information about applying is available here.
We would also recommend going to a mortgage broker who specializes in DACA recipients. They will be able to help you with finding the best mortgage loan option by doing the shopping around for you..
What Are The Requirements?
The requirements for all the abovementioned home loans for DACA recipients are relatively simple and straightforward. Each has nearly the same requirements and necessary documents to present for approval.
To apply for one of these loans, you must:
- – Have an SSN or tax ID number.
- – Be applying for the home that will be your primary residence.
- – Have a current EAD (Employment Authorized Document) card.
- – Be able to meet general loan requirements for all applicants.
The specific paperwork that you must present for loan approval is:
- – Your SSN or tax ID number.
- – Current EAD Card.
- – Expired EAD Cards.
- – Documents that prove sufficient reliable income (such as pay stubs, W-W, bank statements).
Additional Resources:
There are several active organizations that help DACA recipients to achieve their goal of homeownership—which also provide many other important services. If you need their assistance, these organizations will be able to help you fight for your right to homeownership and continued residence in the US.
A few of these organizations are:
The Resurrection Project – An organization that educates on financial literacy, offers information on affordable housing, and advocates for the rights of immigrants.
National Immigration Law Center – An organization that advocates for the rights of immigrants and provides legal advice.
National Partnership For New Americans – An organization that helps immigrants defend against deportation and offers other educational services.
American Civil Liberties Union – This well-known organization has been around since 1920 and has always fought for the rights of people who have not always been able to advocate for themselves.
In Closing…
We hope that you found our blog post about the home-buying process for DACA recipients to be helpful and informative. We love to see all of our clients achieve their goal of homeownership. We especially love to see our DREAMer clients find their dream home! We know how hard the home-buying process can be, and with the extra effort required from DACA recipients for the same loans, we understand how the home buying process could feel even more stressful. Don’t worry though, we’ll always be here to support and help you out along the way.
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If you find yourself needing additional information or help, then feel free to reach out to me directly via phone or email.
About Gerardo Zavala, Realtor
There is a true passion for connecting people with real estate that makes me fall in love with my career over and over again. While my title says, REALTOR® I think I am much more than that. For example, I am present and actively listening to my client’s needs, on the spot when things are urgent, and by your side to say “congratulations.” Most of my clients will say that I am a connection away from support no matter the situation, day, or time. In my opinion, customer service, educating the client on progress and next steps, and overall satisfaction are my top priorities. How can I help you?
