On President Donald Trump’s last day in office, he made a few final acts, including the U.S. Department of Housing and Urban Development (HUD)’s announcement that the Federal Housing Administration (FHA) will again back mortgages Deferred Action for Childhood Arrivals (DACA) program immigrants. Let’s take a look at what that means for Arizona residents.
Last week, HUD said DACA recipients are eligible to apply for mortgages backed by the FHA, as long as they are legally permitted to work in the U.S.
Arizona is home to more than 20,000 DACA program recipients, which means that this announcement could have a big impact on the Arizona housing market. All of these DACA immigrants are now eligible for FHA backed mortgages.
There are still other FHA requirements that will remain in effect for all potential borrowers (including those with DACA status):
- The property will be the borrower’s principal residence
- The borrower has a valid Social Security Number, except for those employed by the World Bank, a foreign embassy or equivalent employer identified by HUD
- The borrower is eligible to work in the U.S., as evidenced by the Employment Authorization Document issued by the USCIS
- The borrower satisfies the same requirements, terms and conditions as those for U.S. citizens
History of DACA & FHA-Backed Mortgages
In the past, the FHA Single Family Housing Handbook included this statement: “Non-US citizens without lawful residency in the U.S. are not eligible for FHA-insured mortgages.” This was first incorporated into FHA guidelines in 2003 (prior to the creation of the DACA program). Then, in 2019, HUD declared that the FHA would no longer back DACA mortgages.
Now, DACA recipients are eligible to apply for and receive mortgages back by the FHA, which opens up more home-ownership possibilities for them in the near future!