The Department of Housing and Urban Development (HUD) announced
on Tuesday that it has extended eligibility for FHA mortgages to individuals
who are classified under the Deferred Action for Childhood Arrivals program
(DACA). These individuals are perhaps better known as “Dreamers.” DACA status
is granted to undocumented individuals who were brought into the country before
their 16th birthday and were under the age of 31 when the category
was established in June 15, 2012. Residency requirements apply and individuals
must be in school, have completed high school, obtained a GED certificate, or be
honorably discharged from one of the military services. DACA status allows its holders
to work legally in the U.S. and prevents their involuntary removal from the
country for a two-year renewable term.

Prior to the HUD announcement, the FHA Single Family Housing
Handbook states, “Non-US citizens without lawful residency in the U.S. are not
eligible for FHA-insured mortgages. HUD says the term “lawful residency” did
not anticipate that a borrower might not have entered the U.S. legally but none
the less be lawfully present. That clause is removed effective January 19,

DACA applicants must conform to all other FHA mortgage
requirements which include purchasing a property as a principal residence,
possessing a valid Social Security Number, (although there are exceptions for
those employed by some foreign entities), and possessing documents certifying eligibility
to work in the U.S.

By Jann Swanson , dated 2021-01-20 15:08:36

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Courtesy of Mortgage News Daily

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