Yes, you can buy a house with DACA. You can apply for a mortgage, close on a home, and hold title the same way any other buyer does. What changed recently is which loan programs will take you: as of May 25, 2025, FHA-insured loans are no longer available to non-permanent residents, so the practical path for most DACA borrowers is now a conventional loan backed by Fannie Mae, with portfolio loans from credit unions and community banks as a secondary option.1HUD.gov. Mortgagee Letter 2025-09 – Revisions to Residency Requirements
What You Can Qualify For Now
Fannie Mae purchases loans made to non-U.S. citizen borrowers who are legally present in the United States, and DACA recipients fall into that category because deferred action provides authorized presence for the duration of the grant.2Fannie Mae. Non-U.S. Citizen Borrower Eligibility Requirements3U.S. Citizenship and Immigration Services. Frequently Asked Questions A standard Fannie Mae conventional loan generally asks for 3% to 5% down. If you put down less than 20%, you’ll pay private mortgage insurance until your equity reaches that threshold.
If your income is modest, look at Fannie Mae’s HomeReady program. It’s built for borrowers earning at or below 80% of the area median income, allows down payments as low as 3%, and accepts nontraditional income sources, which helps when part of the household money comes from a family member.4Fannie Mae. HomeReady Low Down Payment Mortgage The qualifying income cap is tied to where the home is located, so the number is different in every county.
Outside the Fannie Mae system, some community banks and credit unions keep loans on their own books instead of selling them. These portfolio lenders set their own rules, and some specifically serve non-permanent residents. A few will even accept an Individual Taxpayer Identification Number in place of a Social Security Number. Interest rates and down payment requirements usually run higher than conventional loans, so this is the backup path when a Fannie Mae loan isn’t working.
Programs You Cannot Use
Several government-backed programs will turn a DACA application away, and knowing which ones saves you from chasing a dead end:
- FHA loans: closed to non-permanent residents as of May 25, 2025.1HUD.gov. Mortgagee Letter 2025-09 – Revisions to Residency Requirements
- USDA loans: limited to U.S. citizens, non-citizen nationals, and “qualified aliens,” which does not include DACA recipients.5USDA. Applicant Eligibility
- VA loans: require eligible military service, and DACA recipients generally cannot enlist.
- Freddie Mac loans: Freddie Mac requires lawful residency status, which deferred action does not provide, so DACA borrowers are effectively excluded.6Freddie Mac. Guide Section 5103.2
Watch the Freddie Mac line in particular. Freddie Mac runs its own 3%-down program called Home Possible, which sounds a lot like Fannie Mae’s HomeReady and is easy to confuse. DACA borrowers can’t use it. When you apply, confirm that the lender is routing the loan to Fannie Mae.
What Lenders Will Ask For
Legal Presence and a Social Security Number
You’ll need current DACA status and the Employment Authorization Document that comes with it. The EAD proves work authorization and establishes your right to a Social Security Number, which nearly every mortgage lender requires.7HUD.gov. FHA INFO 21-04 – FHA to Permit DACA Status Recipients to Apply for FHA Insured Mortgages8Social Security Administration. Social Security Numbers For Noncitizens If you don’t have an SSN yet, apply at your local Social Security office with the EAD and your passport.
Credit Score
Fannie Mae removed its hard 620 minimum for loans run through its Desktop Underwriter system on November 16, 2025, and the system now weighs risk factors more holistically.9Fannie Mae. Selling Guide Announcement SEL-2025-09 In practice, individual lenders still set their own floors, and 620 is still common. 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 to gross monthly income. For manually underwritten conventional loans, Fannie Mae caps DTI at 36%, with room up to 45% when credit and cash reserves are strong. Automated underwriting can go as high as 50%.10Fannie Mae. Debt-to-Income Ratios Aim well below the ceiling. A lower ratio improves approval odds and leaves breathing room in your budget.
Income History
Lenders generally want a two-year track record of stable income. For a salaried job, that means two years of pay stubs, W-2s, and tax returns. Self-employed borrowers face the same two-year 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 expect detailed questions about them.
Down Payment and Closing Costs
Plan for a minimum of 3% down with HomeReady, or 5% for a standard conventional loan. Closing costs usually add another 2% to 5% of the purchase price and cover the appraisal, title insurance, origination fees, and prepaid taxes and insurance. Many lenders accept gift funds from family for part or all of the down payment, with a signed gift letter confirming the money is not a loan.
The DACA Renewal Risk Behind a 30-Year Mortgage
DACA grants last two years. A mortgage lasts fifteen or thirty. The loan contract doesn’t care about your immigration status, so a lender can’t call the loan if a renewal is delayed or denied. But losing work authorization could make the monthly payment hard or impossible to keep up.
There’s no way to erase that risk, but a few habits reduce it. File your renewal 120 to 150 days before expiration to shrink any gap between grants. Build an emergency fund covering at least six months of mortgage payments. Borrow below the top of your approval range, so the payment survives an income disruption. If you buy with a co-borrower who holds permanent residency or citizenship, the household’s ability to pay doesn’t rest entirely on your renewal.
How the Application Moves
Start with pre-approval before you tour a single house. A pre-approval letter tells you what a lender will actually finance and shows sellers your offer is backed by real underwriting. You’ll hand over your Social Security Number, income documentation, and EAD; the lender pulls credit and issues a conditional commitment, typically good for 60 to 90 days.
Once a seller accepts your offer, the full application opens. Have ready two years of tax returns, recent pay stubs, two to three months of bank statements, and your current EAD. The lender orders an appraisal to confirm value and will expect a home inspection. Underwriters will come back with follow-up questions; answering quickly is often what keeps closing on schedule. Budget 30 to 45 days from accepted offer to closing, longer if complications surface.
Choosing a Lender Who Has Done This Before
Plenty of loan officers have never processed a DACA file, and that inexperience can turn into delay or a denial that a seasoned lender would have avoided. Ask directly: Do you originate Fannie Mae conventional loans for DACA borrowers? How many have you closed in the last year? What documentation do you want beyond the standard package?
Mortgage brokers are often the fastest route because they shop one application to several lenders and know which ones have clear DACA underwriting. Local credit unions are worth a call too, since some run portfolio programs built for non-permanent residents. HUD-approved housing counselors can walk you through the process at no cost and often know which lenders in your area have the strongest track record with DACA borrowers.