Are you a first time home buyer buying a house and considering using an FHA loan but not sure if you can qualify due to your citizenship? What are the fha loan requirements? The Federal Housing Administration (FHA) recently announced that they are now permitting individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) with the U.S. Citizenship & Immigration Service (USCIS) and are legally permitted to work in the U.S. to apply for a FHA Loan.
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Articles referenced in this video:
Prior to January 21st the FHA Handbook read “Non-US citizens without lawful residency in the U.S. are not eligible for FHA-insured mortgages.” This language was incorporated into the FHA Handbook by the Obama Administration in September 2015 although it was first incorporated into FHA guidelines in 2003.”
Other FHA requirements remain in effect for all potential borrowers including DACA status recipients:
• the property will be the borrower’s principal residence;
• the borrower has a valid Social Security Number (SSN), 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; and
• the borrower satisfies the same requirements, terms, and conditions as those for U.S. citizen
What is DACA?
DACA, an acronym for Deferred Action for Childhood Arrivals, is a policy that protects around 800,000 young people — known as “DREAMers” — who entered the United States unlawfully as children. The program does not grant them official legal status or a pathway to citizenship, but it does allow them to apply for a driver’s license, social security number, and work permit.
What is a fha loan? An FHA insured loan is a US Federal Housing Administration mortgage insurance backed mortgage loan that is provided by an FHA-approved lender.
FHA loan 2021 requirements
✅FICO® score at least 580 = 3.5% down payment.
✅FICO® score between 500 and 579 = 10% down payment.
✅MIP (Mortgage Insurance Premium ) is required.
✅Debt-to-Income Ratio less than 43%. (Actually you can go much higher than this)
✅The home must be the borrower’s primary residence.
✅Borrower must have steady income and proof of employment.
FHA Videos You May Find Helpful:
➡Comparing Monthly Payments on FHA vs Conventional Loan – First Time Home Buyer – https://youtu.be/DrqAbTJ0cf8
➡NEW FHA Loan Requirements – First Time Home Buyer – FHA Loan 2021 – https://youtu.be/JwGB0CEZOww
➡How to calcuate PMI on a FHA Loan – How to get rid of PMI – FHA Loan 2020 – https://youtu.be/1UDea_zyhqM
➡FHA Loan Qualifications – First Time Home Buyer – FHA Loan 2020 – https://youtu.be/1SC6WgAJ2yk
➡FHA Pros and Cons – First Time Home Buyer – FHA Loan 2020 – https://youtu.be/fOWjRGQmKDM
➡Buying a home using FHA – First Time Home Buyer – FHA Loan 2020 – https://youtu.be/8KCzd8GPH_w