Cardinal Financial News

DACA Status Borrowers Now Eligible for FHA-Insured Mortgages

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DACA Status Borrowers Now Eligible for FHA-Insured Mortgages
Industry - January 20, 2021

Cardinal Financial is excited to announce additional programs are now available to eligible borrowers who are part of the Deferred Action for Childhood Arrivals (DACA) program.

The Federal Housing Administration (FHA) announced that those borrowers are eligible to apply for FHA-backed mortgages, effective January 19, 2021.

What is new?

The FHA will update its FHA Single Family Housing Handbook to remove this statement: “Non-US citizens without lawful residency in the U.S. are not eligible for FHA-insured mortgages.”

The term “lawful residency” pre-dates DACA; it was first incorporated into FHA guidelines in 2003. It did not anticipate a situation in which a borrower is considered lawfully present even if they did not enter the country legally. Individuals in the DACA program came to the United States as children but now, typically, have a Social Security number, are W-2 wage earners, and pay taxes.

The FHA handbook update is designed to avoid confusion and provide needed clarity to HUD’s lending partners.

What are the eligibility requirements? 

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 United States Citizenship and Immigration Services (USCIS); and   
  • The borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens.
  • The Employment Authorization Document is required to substantiate work status. 
  • A borrower residing in the U.S. by virtue of refugee or asylee status granted by the USCIS is automatically eligible to work in this country.

Ready to get started?

Cardinal Financial loan originators are ready to help you find the right program for you. Get started today with a free rate quote.

About Cardinal Financial

We started Cardinal Financial with a passion for developing a better mortgage experience. Our proprietary loan origination software, Octane®, is a sure advantage, but we soon found out that revolutionary technology only goes so far without revolutionary people. We place a premium on hiring talented, forward-thinking, entrepreneurial spirits who are committed, not only to reimagining the possibilities of mortgage lending, but to delivering a personal experience to every borrower every time. We take a tremendous amount of pride in our people because they’re what sets us apart from the rest. Our culture is strengthened by self-starters who look forward to coming to work every day and are willing to go the extra mile for their colleagues and their clients. Cardinal Financial is where your career meets your calling. Join us and be a part of something more than mortgage lending. For more information about Cardinal Financial, visit or follow us on social media: and @CardinalFinancial on Instagram.