Yes, buying a house with DACA is possible, but the menu of mortgage options got shorter in May 2025. FHA loans, which had been the easiest entry point for DACA borrowers since 2021, are no longer available to non-permanent residents. Conventional loans backed by Fannie Mae are now the main path, and some credit unions and portfolio lenders offer alternatives outside the government-backed system.
Mortgages DACA Recipients Can Still Get
Fannie Mae Conventional Loans
Fannie Mae purchases loans made to non-U.S. citizen borrowers who are legally present in the country, and DACA recipients qualify because deferred action provides authorized presence for the duration of the deferral.1Fannie Mae. Non-U.S. Citizen Borrower Eligibility Requirements2U.S. Citizenship and Immigration Services. Frequently Asked Questions A standard conventional loan typically requires 3% to 5% down. If you put down less than 20%, you’ll pay private mortgage insurance until your equity hits that threshold.
Fannie Mae’s HomeReady program is worth asking about if your income sits at or below 80% of the area median. HomeReady allows down payments as low as 3% and accepts nontraditional income sources, which helps when part of your household income comes from a family member.3Fannie Mae. HomeReady Low Down Payment Mortgage The income cap varies by county.
Portfolio Lenders and Credit Unions
Some community banks and credit unions keep loans on their own books rather than selling them to Fannie Mae or Freddie Mac. These portfolio lenders set their own rules, and a few specifically serve non-permanent residents. Some even accept an Individual Taxpayer Identification Number in place of a Social Security Number. Interest rates tend to run higher and down payments stiffer, but if conventional underwriting doesn’t work for your situation, a portfolio lender is worth a call.
Loan Programs That Aren’t Available
Knowing which programs to skip saves time and disappointment:
- FHA loans. HUD’s Mortgagee Letter 2025-09 removed the “non-permanent residents” category from both Title I and Title II FHA programs effective May 25, 2025. Only U.S. citizens, lawful permanent residents, and citizens of certain Pacific Island nations remain eligible.4HUD.gov. Mortgagee Letter 2025-09 – Revisions to Residency Requirements5HUD.gov. HUD Cracks Down on Government-Backed Mortgages for Illegal Immigrants
- USDA loans. Limited to U.S. citizens, non-citizen nationals, and “qualified aliens,” a category that does not include DACA recipients.6USDA. Applicant Eligibility
- VA loans. Require qualifying military service, and DACA recipients generally cannot enlist.
- Freddie Mac loans. Freddie Mac’s guidelines require lawful residency status, and DACA’s deferred action does not confer that status. That excludes Freddie Mac’s Home Possible program too, so confirm any lender is running your file through Fannie Mae rather than Freddie Mac.7Freddie Mac. Guide Section 5103.22U.S. Citizenship and Immigration Services. Frequently Asked Questions
What You’ll Need to Qualify
Valid DACA Status, EAD, and an SSN
You’ll need current DACA status and the Employment Authorization Document that comes with it. The EAD proves work authorization to the lender and establishes your right to a Social Security Number, which nearly every mortgage lender requires.8Social Security Administration. Social Security Numbers For Noncitizens If you don’t have an SSN yet, apply at your local Social Security office with your EAD and passport.
Credit Score
Fannie Mae removed its hard 620 minimum for loans underwritten through Desktop Underwriter as of November 16, 2025, and the system now weighs risk factors more holistically.9Fannie Mae. Selling Guide Announcement SEL-2025-09 Most lenders still set their own floor, and 620 is a common one. A score of 700 or higher opens up better rates and more lenders.
Debt-to-Income Ratio
Your debt-to-income ratio compares total monthly debt payments against gross monthly income. Manually underwritten Fannie Mae loans cap this at 36%, or up to 45% with strong credit and reserves. Loans processed through automated underwriting can go as high as 50%.10Fannie Mae. Debt-to-Income Ratios Staying well under the ceiling improves approval odds and leaves room in your budget once you own the home.
Employment and Income
Expect the lender to want a two-year history of stable income: pay stubs, W-2s, and tax returns for salaried employees. Self-employed borrowers face the same lookback, though Fannie Mae will consider less than two years of self-employment if you have a full year of business tax returns and prior experience in the same field.11Fannie Mae. Underwriting Factors and Documentation for a Self-Employed Borrower Employment gaps aren’t automatic disqualifiers, but the lender will ask about them.
Down Payment and Closing Costs
Plan for 3% down if you qualify for HomeReady, or 5% for a standard conventional loan. Closing costs run another 2% to 5% of the purchase price and cover the appraisal, title insurance, origination fees, and prepaid taxes and insurance. Gift funds from family are often allowed toward the down payment, but the lender will want a gift letter confirming the money isn’t a loan.
The Renewal Risk Over a 30-Year Loan
DACA has to be renewed every two years, and your mortgage will outlast any single grant. If DACA ends or your renewal is denied, you lose work authorization but still owe the loan. A lender cannot call the mortgage because your immigration status changed; as long as payments come in, the loan stays intact. Losing work authorization, though, could make those payments hard to keep up.
There’s no way to erase this risk, but a few habits shrink it. File renewals early, 120 to 150 days before expiration, so grants don’t lapse. Build an emergency fund of at least six months of mortgage payments. Borrow below the top of your approved range so the payment survives an income disruption. And if you buy with a co-borrower who has permanent residency or citizenship, the household’s ability to pay isn’t riding entirely on your next renewal.
How the Application Process Works
Start with pre-approval before you tour homes. You’ll submit your SSN, income documentation, and EAD; the lender pulls credit and issues a conditional commitment, typically good for 60 to 90 days. A pre-approval letter also tells sellers your offer is backed by real underwriting.
Once your offer is accepted, the formal application begins. Have the last two years of tax returns, recent pay stubs, two to three months of bank statements, and your current EAD ready. The lender orders an appraisal to confirm the price, and you’ll want an inspection to flag structural or mechanical problems. Underwriting will bring follow-up requests for documents; the faster you respond, the closer you stay to your closing date. Budget 30 to 45 days from accepted offer to closing.
Finding a Lender Who Knows DACA
Not every loan officer has closed a DACA file, and working with one who hasn’t can turn into avoidable delays or a denial another lender would have approved. Ask directly: Do you originate Fannie Mae conventional loans for DACA borrowers? How many have you closed in the past year? What documents do you need beyond the standard package?
Mortgage brokers can be efficient because they shop multiple lenders and usually know which ones have clean DACA underwriting guidelines. Local credit unions are worth a call for the same reason, especially any with portfolio programs aimed at non-permanent residents. HUD-approved housing counselors will help you work through the process at no cost and often know which lenders in your area handle DACA borrowers well.