The press recently reported that the Federal Housing Administration (FHA) changed its position on the eligibility of Deferred Action for Childhood Arrival (DACA) home loan borrowers, which brought the challenge to national attention. Three U.S. senators sent a letter to the Department of Housing and Urban Development (HUD) to understand what was happening.
DACA ‘dreamers’ could have issues with FHA loans
In a response to the senator’s letters, FHA said policy does not permit it to lend money to homebuyers who do not have legal residency status. It stated that turning down DACA applicants wasn’t a policy change.
However, Fannie Mae – which will still back loans to DACA applicants – has a similar rule yet say it will still back home loans made to DACA recipients.
Tim Rood, the chairman of The Collingwood Group, explained in a recent opinion piece in DSNews, that the issue focuses on just one question: Do DACA recipients have lawful residence in the U.S.?
Rood states that it once was up to lenders to determine whether DACA was a legal residency status, and that FHA “appears to have made an internal determination, based on language from US Citizenship and Immigration Services (USCIS), that DACA does not provide legal residency.”
A key to understanding the change is that DACA recipients are viewed as “legally present” as opposed to a “legal resident.” Interpretation of the words “legally present” appear to be key in understanding both Fannie Mae and FHA’s decision whether or not to lend money to DACA recipients.
“Fannie Mae purchases and securitizes mortgages to non-citizens who are lawful permanent or non-permanent residents of the United States under the same terms available to US citizens,” the government-sponsored enterprise said in a bulletin. “If a borrower can provide documentation of three-year income continuity when required, the fact that their status is renewed only every two years is not a factor – the borrower is legally present and has met the continuity of income requirements.”
As outlined by Rood, FHA apparently thinks “legally present” is not the same thing as a lawful resident, adding that “Lenders who make FHA loans to DACA borrowers should be ready to make a strong legal case that FHA’s interpretation is wrong.”
Ready to find your new home here in the Tampa Bay and Surrounding Areas? Nick, Cindy & Nicholas Davis with RE/MAX Premier Group are here to assist you with all your Real Estate Needs. We are always available at 813-300-7116 to answer your questions or you can simply click here and we will be in touch with you shortly.
Start Your Home Search
Ways Our Family Can Help Your Family
All Homes For Sale in & Around Tampa
- List View
- Map View
- Grid View
-
-
Lot Size38.12 ac
-
Home Size960 sqft
-
Beds2 Beds
-
Baths2 Baths
-
Year Built1971
-
Days on Market0
-
-
-
Lot Size7,841 sqft
-
Home Size1,641 sqft
-
Beds3 Beds
-
Baths2 Baths
-
Year Built1973
-
Days on Market1
-
-
-
Lot Size6,099 sqft
-
Home Size1,956 sqft
-
Beds2 Beds
-
Baths2 Baths
-
Year Built2007
-
Days on Market1
-
-
-
Lot Size22,216 sqft
-
Home Size2,354 sqft
-
Beds4 Beds
-
Baths3 Baths
-
Year Built2024
-
Days on Market1
-
-
-
Lot Size21,780 sqft
-
Home Size2,354 sqft
-
Beds4 Beds
-
Baths3 Baths
-
Year Built2024
-
Days on Market1
-
-
-
Lot Size5,228 sqft
-
Home Size1,368 sqft
-
Beds3 Beds
-
Baths2 Baths
-
Year Built1973
-
Days on Market1
-
-
-
Lot Size6,099 sqft
-
Home Size2,789 sqft
-
Beds4 Beds
-
Baths3 Baths
-
Year Built2004
-
Days on Market1
-
-
-
Lot Size22,652 sqft
-
Home Size1,230 sqft
-
Beds2 Beds
-
Baths2 Baths
-
Year Built2001
-
Days on Market1
-
-
-
Lot Size10,890 sqft
-
Home Size1,428 sqft
-
Beds3 Beds
-
Baths2 Baths
-
Year Built1986
-
Days on Market1
-
-
-
Lot Size6,970 sqft
-
Home Size1,728 sqft
-
Beds4 Beds
-
Baths3 Baths
-
Year Built1925
-
Days on Market1
-
See all All Homes Around Tampa.
(all data current as of
10/31/2024)
Listing information deemed reliable but not guaranteed. Read full disclaimer.