How to Get DACA Mortgage Loans Without the Stress

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DACA Mortgage Loans: How DREAMers Can Buy a Home in 2025

Are you a DACA recipient dreaming of buying your first home? You’re not alone. Many young adults under the Deferred Action for Childhood Arrivals (DACA) program are ready to take that next step into homeownership. The good news? DACA mortgage loans are available and can help make your dream a reality.

In this updated guide, we’ll explain DACA mortgage loans, the types of loan programs available, how to qualify, and what steps you need to take to get approved. Whether you’re a first-time buyer or looking to refinance, we’ve got you covered. Let’s dive in.

What Are DACA Mortgage Loans?

DACA mortgage loans are for people protected by the Deferred Action for Childhood Arrivals (DACA) program. DACA recipients can apply for the same types of mortgages as U.S. citizens, like FHA loans and conventional loans.

The key difference is in the documentation needed. DACA recipients must show their work authorization in the U.S. and meet the usual loan qualifications. With proper guidance, most DACA recipients can qualify for a mortgage just like anyone else.

Who Is Eligible for a DACA Mortgage Loan?

To qualify for DACA mortgage loans, you typically need:

• An Employment Authorization Document (EAD) issued by USCIS.
• A Social Security Number (SSN)
• Verification of legal residency in the U.S. (you are not required to be a permanent resident)
• A stable income and employment history
• A minimum credit score of 580 (higher scores improve your chances)
• A down payment (as low as 3.5% for FHA loans)
• The property must be a primary residence

Gustan Cho Associates specializes in helping DACA borrowers who have been turned down by other lenders. Over 80% of our clients have been unable to get approved elsewhere.

What Loan Options Are Available for DACA Recipients?

DACA recipients can qualify for several types of mortgage loans. Here’s a breakdown:

1. FHA Loans for DACA Borrowers

DACA mortgage loans are special home loans backed by the Federal Housing Administration (FHA) that help DACA recipients buy homes. With these loans, you can get a house with as little as a 3.5% down payment. If you have a credit score starting at 580, you may qualify for these loans, which often come with lower interest rates than regular loans.

These loans are for homes that you will live in, not for investment properties. As of 2021, it has been confirmed that DACA borrowers with valid work permits and Social Security numbers can apply for FHA loans, and this rule is still in place in 2025.

2. Conventional Loans for DACA Recipients

Conventional loans are home loans that aren’t backed by the government. To snag one of these loans, you’ll typically need a decent credit score—usually 620 or higher. Plus, you’ll need to put down at least 3% to 5% of the home’s price. These loans might also ask for more detailed paperwork. They’re a good fit for folks with solid credit and a steady job.

3. Non-QM Loans for DACA Recipients

Non-QM loans are a solid option for self-employed folks or anyone with income from non-traditional sources. These loans include bank statement loans, asset-based loans, or ones based purely on profit and loss documents. They typically need higher down payments, usually around 10% to 20%. One cool thing about DACA mortgage loans is that they have more relaxed underwriting guidelines, making it easier for recipients to get approved.

Gustan Cho Associates teams up with over 210 wholesale lenders, including private ones that provide non-QM loans for DACA recipients facing unique circumstances.

Step-by-Step Guide: How to Apply for DACA Mortgage Loans

Here’s how the process works:

Step 1: Gather Your Documents

• Valid EAD card
• Social Security number
• Last 2 years of W-2s or tax returns (or bank statements for non-QM loans)
• Most recent pay stubs
• 2 months of bank statements

Step 2: Get Pre-Approved

The first step is to get pre-approved to be ready to buy a home with DACA mortgage loans. This means the lender will check your income, credit, and some important papers. Once they do that, they will give you a pre-approval letter. This letter is powerful because it shows sellers you are a serious buyer ready to make a deal. Getting pre-approved is a smart move in the home-buying process!

Step 3: House Hunting

When you look for a home, use your pre-approval. It shows sellers how much you can spend. Work with a real estate agent who understands DACA mortgage loans. They can help you find houses that match your budget and make buying one much easier.

Step 4: Final Loan Approval

In the second-to-last step of getting your DACA mortgage loans, we look at two important things: the property appraisal and underwriting. First, we check the property’s value to ensure it matches what you’re paying. Then, we review your income and credit history to see if you can handle the loan payments. This part is super important because it helps us determine if you qualify for the loan and ensures everything is set for final approval.

Step 5: Closing

You will sign the final paperwork to make everything official. You may also need to pay closing costs and extra fees to buy a home. Once everything is finished, you will get the keys to your new home. You can then start moving in and making it your own!

With Gustan Cho Associates, you are guided every step of the way. We work weekends, evenings, and holidays to close your loan quickly.

Benefits of DACA Mortgage Loans

Buying a home with DACA mortgage loans offers several life-changing benefits:

• Build ownership: Every payment helps you own more of your home instead of paying rent.
• Stable monthly payments : Fixed-rate loans keep your payment predictable
• Tax deductions : Mortgage interest and property taxes may reduce your tax bill
• No more lease worries : You own the home, not a landlord
• Peace of mind : Homeownership provides long-term stability

Many DACA recipients think they can’t own a home—but that’s not true. With the right mortgage advisor, it’s absolutely possible.

2025 Updates on DACA and Mortgage Eligibility

As of 2025, DACA recipients remain eligible for FHA and conventional mortgage loans, provided they have:

• Valid EAD and SSN
• Meet credit and income guidelines
• Are purchasing a primary residence

HUD and the Biden administration continue to support DACA homeownership. However, always work with lenders like Gustan Cho Associates, who stay current on guideline changes.

We also offer manual underwriting and flexible terms for borrowers with limited credit or higher debt-to-income ratios.

Why Work With Gustan Cho Associates?

At Gustan Cho Associates, we’re proud to be one of the few mortgage firms in the country with no lender overlays on FHA and conventional loans. That means if HUD or Fannie Mae allows it, we follow those guidelines—no extra rules.

We also:

• Approve DACA borrowers denied elsewhere
• Offer fast closings
• Have access to 210+ wholesale lenders
• Offer FHA, conventional, and non-QM options
• Work 7 days a week to serve you

Many lenders don’t understand how DACA mortgage loans work. We do.

Get Pre-Approved for DACA Mortgage Loans Today

Your dream of homeownership doesn’t have to stay a dream. Whether you’re buying your first home, upgrading, or refinancing, we’re here to help. Reach out today and let us help you get started on the path to owning your home. Call us at 800-900-8569, text us for a faster response, or email us at alex@gustancho.com. With the right mortgage team, DACA mortgage loans are not only possible—they’re achievable.

Frequently Asked Questions About DACA Mortgage Loans:

Q: Can I Get a Home Loan as a DACA Recipient?

A: Yes! Many lenders now offer DACA mortgage loans to people with valid work permits (EAD) and Social Security numbers. You don’t need to be a permanent resident to buy a home.

Q: What are DACA Mortgage Loans Exactly?

A: DACA mortgage loans are regular home loans—like FHA or conventional loans—that DACA recipients can qualify for. The key is showing that you’re legally allowed to work in the U.S.

Q: What’s the Lowest Credit Score I Need for a DACA Loan?

A: You usually need a credit score of at least 580 to qualify for most DACA mortgage loans, especially for FHA. Gustan Cho Associates can still help you explore your options if your score is lower.

Q: Do I Need a Green Card to Apply for DACA Mortgage Loans?

A: A green card is not necessary. You may be eligible for DACA mortgage loans with a valid Employment Authorization Document (EAD) and a Social Security number.

Q: What Kind of Down Payment do I Need?

A: FHA DACA mortgage loans let you buy a home with as little as 3.5% down. Conventional loans usually need 3% to 5% down, and non-QM loans may require more.

Q: Can I Get Approved if I’m Self-Employed?

A: Yes! Gustan Cho Associates offers non-QM DACA mortgage loans for self-employed borrowers. These loans can be made using bank statements or profit and loss statements instead of tax returns.

Q: What Documents do I Need to Apply?

A: You will need your EAD card, Social Security number, pay stubs or bank statements, and tax returns to apply for DACA mortgage loans. Your lender will help you understand what documents to provide.

Q: Will the Loan Process be Different Because I’m on DACA?

A: Not really. DACA mortgage loans follow the same steps as any other loan—getting pre-approved, shopping for a home, and closing. Gustan Cho Associates walks you through every part.

Q: What if Other Lenders Turned Me Down?

A: Don’t give up! Gustan Cho Associates specializes in DACA mortgage loans for borrowers denied by other lenders. We have more programs and flexible guidelines that could work for you.

Q: How do I Get Started with a DACA Mortgage Loan?

A: Getting started is easy. Just contact Gustan Cho Associates for a free pre-approval. We’ll help you understand your budget and find the best DACA mortgage loans for your situation.

This blog about the waiting period after foreclosure requirements for borrowers on title but not on mortgage was updated on May 20th, 2025.