7 Questions About DACA and Home Ownership Answered

The Deferred Action for Childhood Arrivals (DACA) program and its recipients have left many people wondering about their homeownership dreams.

We researched some of the most frequently asked questions about DACA recipients and their specific homeownership challenges and found the answers for you. At On Q Financial, we believe in making the dream of homeownership a reality – for everyone. The Dream is Inclusive.

Q: “Can I buy a home as a DACA recipient?”

Yes! Some mortgage lenders may tell you a DACA recipient can’t get a loan, but that isn’t true. Our Mortgage Consultants can give you options based on your legal status, credit score, credit history, employment history, income, assets, and other qualifying factors. Contact a mortgage consultant today to find out your options!

Q: “Is there more paperwork for DACA recipients?”

Not at all! Being a DACA beneficiary does not necessarily affect the amount of paperwork or documentation needed for a mortgage. DACA recipients do not have to fill out additional paperwork due to their residential status, but your mortgage consultant will need the following:

  • A current Employment Authorization Document (EAD) or other documentation showing immigration status (Visa, etc.)
  • Employment Verification
  • Pay Stubs
  • Social Security Card
  • Bank statements

For a full mortgage checklist, click here.

Q: “Does On Q offer bilingual services and support for DACA recipients?”

Absolutely! On Q is one of the first mortgage lenders to have a fully Spanish website with everything you need to know about the mortgage process. We also have critical home loan documents in Spanish, including the Loan Estimate, Closing Disclosures, and the loan application.

We want to make this process as easy and transparent for you as possible. Like getting married or starting a family, buying a home is an important milestone. We truly believe all home buyers need to be informed and understand the documents they’re signing.

Q: “How do I qualify for a mortgage?”

All mortgages require two years of prior work history to qualify. To know if you are eligible for a mortgage, we need more information and documentation from you. If you’re not sure what is required, you can get a free, no-obligation quote by connecting with a Mortgage Consultant.

Q: “What mortgage programs are available for DACA recipients?”

Conventional loans with Fannie Mae only and Broker programs were once the only option for DACA recipients. These loans had more stringent guidelines and higher rates, and Broker programs had higher down payment requirements. However, a change on January 19, 2021, made FHA loans available for DACA recipients.

HUD’s regulation change created new homeownership opportunities for DACA by waiving a section containing the “lawful residency” language, which had previously confused lenders and made DACA recipient approval less likely.

Conventional and FHA loans offer different benefits to a homeowner and deciding which is best for you can be daunting.

We recommend starting with a pre-approval. A pre-approval helps you estimate costs by considering factors like your credit score, income, and debt. Our Mortgage Consultants can help you plan for the future and advise you on the next steps if you’re not confident you’ll qualify.

Q: “Is now the right time to buy a house?”

Right now is a great time to buy a home! With home loan rates at a historic low and home prices continuing to rise, waiting any longer may cost you. The cost of waiting to buy a home, as interest rates go up, could increase your monthly mortgage payment by hundreds of dollars. It’s a great time to lock in your rate now, while rates are still at all-time lows.

Q: “Do first-time homebuyers have more options?”

While many programs focus mainly on first-time homebuyers, there are various options for all kinds of homebuyers. DACA recipients who already have a home could be eligible for refinancing options as well. Are you curious about reducing your rate or monthly payment? Reach out to one of our Mortgage Consultants to explore your options.

Clients Who Have Achieved Their Dream

Now that we’ve touched on the home loan questions, here’s some insight from a few DACA recipients and other home buyers we’ve helped achieve their dream.

Manuel wasn’t sure where to turn when he began his home search. Many mortgage lenders and corporations turned him away due to his DACA status. Luckily he found Juan Sandoval, a bilingual Mortgage Consultant with On Q in Plano, Texas. He helped Manuel and his family achieve their dream of homeownership. Juan Sandoval said, “We got his loan closed in a heartbeat; they’re very happy and grateful.”

Juan Sandoval shared another experience with a client who immigrated to the United States from Venezuela and applied for a home loan. Luis met with Juan after not having much luck anywhere else. With some guidance and helpful resources, Luis got approved for a mortgage and found his dream home. Juan said, “My team and I were able to help guide him through the whole process from prequalification to close. We’re so happy that we could make his dream of homeownership a reality.”

On Q Financial is proud to make the dream of homeownership a reality for families across the country. At On Q, The Dream is Inclusive. We offer various tools, including our mortgage calculator, information about mortgage rates and loans, and mortgage news available in Spanish. We’re helping more and more families find their way HOME.

For more information on how to make your dream of homeownership a reality, visit us at onqfinancial.com.

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About the Author

Before opening On Q Financial in 2005, John Bergman originated and funded 450 units a year as a loan officer. He founded the company with just $1M of personal life savings—committed to his vision for building the best independent mortgage organization in the industry.

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