FHA Says DACA Recipients Eligible for FHA Loans

The Federal Housing Administration shortly before Wednesday’s inauguration released a newsletter which gives beneficiaries of Deferred Action for the Arrivals of Children with US work permits access to the loans it provides.

The new bulletin from the Department of Housing and Urban Development addresses part of the FHA handbook, which states that “Non-US citizens without legal residency in the United States are not eligible for FHA insured mortgages.”

Previously, Len Wolfson, deputy secretary of the Department of Housing and Urban Development under the Trump administration, in 2019 declared the language of “non-citizens” in the FHA handbook. made DACA recipients ineligible for FHA loans.

This language was first added in 2003 under the Bush administration, according to the Department of Housing and Urban Development. DACA became a policy under the Obama administration in 2012.

HUD said this week’s change was made because “the term ‘legal residence’ predates DACA and therefore did not anticipate a situation where a borrower might not have legally entered the country, but nonetheless be considered legally present. “

The DACA allows some people who were brought to the United States without legal authorization as children to defer deportation in renewable two-year increments and become eligible for a work permit until they have serious crimes or misdemeanors in their records.

The Trump administration tried to end DACA, but the Supreme Court ruled against the move 5-4 in June of last year, finding a violation, among other things, of the law on administrative procedure.

President Biden had said that restoring the DACA as an active program would be one of his first points of action, and some have it. hypothesized that this could lead to a change in FHA policy. HUD may have made the change, dated Jan.19, as a courtesy to Biden’s transition team.


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About Juana Renfrow

Juana Renfrow

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