How to Get Approved for DACA Mortgage Loans

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.

Discover how DACA recipients can qualify for mortgage loans in 2025. Learn about lender requirements, documentation needed, loan programs, and expert tips for successful home financing approval.

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. In the following paragraphs, we will cover how to qualify and get approved for DACA Mortgage Loans.

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. Dale Elenteny, a senior mortgage loan originator at Gustan Cho Associates says the following about DACA Mortgage Loans:

Despite unique challenges in the mortgage lending landscape, the dream of homeownership remains achievable for DACA (Deferred Action for Childhood Arrivals) recipients.

While obtaining a mortgage as a DACA recipient requires additional preparation and documentation, numerous lenders now offer specialized programs designed to help Dreamers secure financing for their first homes. 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 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 other lenders have turned down. 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 the government doesn’t back. 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 partners 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. The lender will check your income, credit, and important documents. 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 match your pay. 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!

Understanding the mortgage process as a DACA recipient involves navigating specific requirements, gathering comprehensive documentation, and working with knowledgeable lenders who understand immigration-related financing.

This comprehensive guide will walk you through every step of the DACA mortgage approval process, from initial preparation to closing on your dream home. 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 you 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.

DACA recipients possess legal work authorization and Social Security numbers, making them eligible for most conventional mortgage programs.

The key distinction lies in the temporary nature of DACA status, which requires additional documentation and consideration from lenders. Most major mortgage programs, including conventional loans backed by Fannie Mae and Freddie Mac, explicitly allow lending to DACA recipients. 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. 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. The federal government clarified in 2014 that DACA recipients can legally obtain mortgages, removing previous uncertainty about their eligibility.

This clarification opened doors to homeownership for hundreds of thousands of Dreamers across the United States. However, individual lenders may have varying policies regarding DACA borrowers, making it essential to work with experienced professionals.

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.

How to Get Approved for DACA Mortgage Loans

Learn how to qualify for DACA mortgage loans in 2025. Discover the needs, loan options, and tips for Dreamers to get approved for homeownership.

Homeownership for Dreamers

For many Dreamers using the Deferred Action for Childhood Arrivals (DACA) program, buying a home in the U.S. is more than a wish. It’s a true goal. Even though some banks put tougher requirements in place, there are mortgage options aimed at helping DACA recipients become homeowners. In this post, we’ll show you how to qualify for DACA mortgage loans by breaking down what lenders need, and we’ll offer tips to boost your approval chances.

Understanding DACA Mortgage Loans

What Are DACA Mortgage Loans?

DACA mortgage loans are home-financing options for anyone in the deferred-action program. These buyers are typically called Dreamers. Even though they aren’t U.S. citizens, DACA holders can tap into certain loan plans that let them buy or refinance a home.

Are DACA Recipients Eligible for FHA, VA, USDA, and Conventional Loans?

• FHA Loans: You can apply for FHA loans under DACA if you pass the credit, income, and residency checks.
• Conventional Loans: Loans backed by Fannie Mae and Freddie Mac are open to DACA recipients.
• Just keep a valid Employment Authorization Document (EAD) on hand.
• VA and USDA Loans: I’m sorry, but DACA borrowers aren’t eligible for VA or USDA loans since those programs specifically require U.S. citizenship or permanent resident status.

Mortgage Requirements for DACA Borrowers

EAD and SSA Number

When you apply, you need to bring:

• A valid Employment Authorization Document.
• A Social Security Number from the Social Security Administration

Income and Employment Verifications

Lenders will be looking for:

• W-2 earnings from your job.
• Pay stubs for the past 30 days.
• Two years of tax returns if you’re self-employed.

Proving stable and verifiable income makes or breaks your application.

Credit Score Guidelines

• FHA loans: You need a credit score of at least 580 for the 3.5% down payment.
• Conventional loans: A minimum score of 620 is required.

Higher credit scores improve your chances of getting approved and scoring a lower interest rate.

Down Payment Guidelines

• FHA Loans: If your credit score is 580 or higher, you’ll need at least 3.5% down.
• Conventional Loans: Programs like HomeReady and Home Possible let you buy with just 3% down.

How to Boost Your Mortgage Application

Build and Keep Good Credit

Make every payment on time, pay down credit card balances, and hold off on taking on new debt until after you apply.

Save for a Bigger Down Payment

Putting down more reduces the lender’s risk, which may make it easier for you to get approved.

Pick the Right Lender

Some lenders won’t work with DACA borrowers. Find a mortgage company without overlays and experience in DACA loans to avoid surprise denials.

Get Pre-Approved

A pre-approval letter helps you understand your budget and signals to sellers that you’re a serious buyer.

Top Mortgage Programs for DACA Recipients

FHA Loans for Dreamers

FHA loans are popular because they give you a lower credit score and a smaller down payment.

Conventional Loans for DACA Borrowers

Fannie Mae and Freddie Mac allow DACA borrowers to buy a primary home at competitive rates and with flexible down payment options.

Non-QM (Non-Qualified Mortgage) Options

If you can’t meet FHA or conventional rules, Non-QM lenders have choices:

• Bank statement mortgages, basing loans on deposits rather than tax returns.
• DSCR (Debt Service Coverage Ratio) loans are designed for property investors.
• Asset-depletion loans, counting your savings or investments for income.

These help self-employed DACA recipients, as many have income that is not fully shown on tax records.

Common Challenges for DACA Borrowers

• Limited lender participation: Some banks still turn down DACA applicants, even when approved by other lenders.
• Documentation hurdles: You may need extra records to verify your status or income.
• Higher scrutiny: Expect lenders to ask for stronger compensating factors, like higher credit scores or larger cash reserves.

Tips to Get Approved for DACA Mortgage Loans in 2025

• Choose a lender that focuses on DACA loans, not just conventional ones.
• Keep your employment authorization valid.
• Avoid any lapses in your legal status.
• Keep a low debt-to-income (DTI) ratio by paying down older debt.
• Add a co-borrower, such as a U.S. citizen relative, to help your odds.
• Submit your application early since DACA paperwork can slow the review process.

Becoming a homeowner is something Dreamers can accomplish. With proper prep and advice, you can secure. DACA recipients can access mortgage loans and build a more secure financial future. At Gustan Cho Associates, we excel in approving applicants with special circumstances, including DACA holders, when other banks turn you away.

Call us at 800-900-8569 or click “Apply Now” to start your mortgage approval today.

FAQs About DACA Mortgage Loans

Can Dreamers Qualify for FHA Loans?

• DACA cardholders with a current EAD and a Social Security number can tap into FHA financing.

Are VA or USDA Loans Available to DACA Borrowers?

• Those loan programs are open only to U.S. citizens and permanent residents.

Do DACA Borrowers Need a Co-Signer?

• It isn’t mandatory, but a co-borrower with good credit and steady income can strengthen your application.

What’s the Minimum Credit Score For a DACA Borrower?

• FHA guidelines generally require a score of at least 580, while conventional loans often require a score of 620 or higher.

Can Self-Employed DACA Recipients Secure a Mortgage?

• Absolutely.
• We offer solutions like bank statement loans and Non-QM programs for self-employed Dreamers.

Frequently Asked Questions About DACA Mortgage Loans

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

• 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?

• 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.

What’s The Lowest Credit Score I Need for a DACA Loan?

• 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 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?

• 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?

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

Q: What Documents Do I Need to Apply?

• 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?

• 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?

• 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?

• 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 is about the waiting period after foreclosure requirements for borrowers on the title, but not on the mortgage, which was updated on September 13th, 2025.