What we verified in “DACA and mortgages: what FHA, Fannie Mae and USDA say today”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. Under the DACA regulation (8 CFR §236.21), deferred action is a form of enforcement discretion not to pursue the removal of certain people for a limited period; that temporary forbearance does not give any right to remain in or reenter the United States; and during that period USCIS may grant employment authorization to DACA recipients who show an economic need.

   Sources 1 · 8 CFR §236.21(c)(1)–(2): 'It is a form of enforcement discretion not to pursue the removal of certain aliens for a limited period'; 'This temporary forbearance from removal does not confer any right or entitlement to remain in or reenter the United States'; 'USCIS may grant employment authorization pursuant to 8 CFR 274a.13 and 274a.12(c)(33) to DACA recipients who have demonstrated an economic need' · Checked October 17, 2026

2. Under 8 CFR §236.23, DACA is granted for an initial or renewal period of 2 years, at the discretion of the Department of Homeland Security (DHS), and the related work authorization, if approved, is issued for the same period.

   Sources 2 · 8 CFR §236.23(a)(4): 'will be provided for an initial or renewal period of 2 years, subject to DHS's discretion'; 'will be issued, subject to DHS's discretion, for the period of the associated grant of Deferred Action for Childhood Arrivals' · Checked October 17, 2026

3. Under 8 CFR §236.21(c)(3), during DACA, and on the basis of that subpart only, a DACA recipient is considered 'lawfully present' under the provisions of 8 CFR §1.3.

   Sources 1 · 8 CFR §236.21(c)(3): 'During this period of forbearance, on the basis of this subpart only, a DACA recipient is considered'; 'under the provisions of 8 CFR 1.3' · Checked October 17, 2026

4. The definition in 8 CFR §1.3 is titled 'lawfully present aliens for purposes of applying for Social Security benefits' and applies for the purposes of 8 U.S.C. §1611(b)(2) only; the people it covers include those currently in deferred action status.

   Sources 3 · 8 CFR §1.3: 'Lawfully present aliens for purposes of applying for Social Security benefits'; 'For the purposes of 8 U.S.C. 1611(b)(2) only'; 'Aliens currently in deferred action status' · Checked October 17, 2026

5. Under the Social Security regulation (20 CFR §422.104), SSA can assign a Social Security number to a citizen, or to a noncitizen admitted for permanent residence or under other authority of law permitting them to work in the United States, if they meet the evidence requirements.

   Sources 4 · 20 CFR §422.104(a)(1)–(2): 'We can assign you a social security number if you meet the evidence requirements'; 'An alien lawfully admitted to the United States for permanent residence or under other authority of law permitting you to work in the United States' · Checked October 17, 2026

6. HUD Mortgagee Letter 2021-12 was issued to clarify that DACA recipients could get FHA-insured financing, for case numbers assigned on or after July 26, 2021; a non-permanent resident could qualify if the home would be their principal residence, they had a valid Social Security number, showed a current work permit (Form I-766) and met the same requirements as a citizen; and if the permit would expire within one year and there was a history of renewals, the lender could assume it would be renewed. That non-permanent resident section was removed by Mortgagee Letter 2025-09.

   Sources 5 · Mortgagee Letter 2021-12 (May 28, 2021): 'to clarify the eligibility of Federal Housing Administration (FHA) insured financing for Deferred Action for Childhood Arrivals (DACA) recipients'; 'must be implemented for mortgages with case numbers assigned on or after July 26, 2021'; 'the Property will be the Borrower's Principal Residence'; 'an Employment Authorization Document (USCIS Form I-766) showing that work authorization status is current'; 'the Borrower has a valid SSN'; 'will expire within one year and a prior history of residency status renewals exists'; 'the Mortgagee may assume that continuation will be granted' · Checked October 17, 2026 · Rescinded

7. HUD Mortgagee Letter 2025-09 removes the non-permanent resident sections in their entirety, eliminating their eligibility for FHA loans; it must be implemented for case numbers assigned on or after May 25, 2025; lawful permanent residents remain eligible on the same terms as citizens, as do citizens of the Federated States of Micronesia, the Marshall Islands and Palau; a Social Security card is not sufficient to prove immigration or work status; and it also applies to HECM reverse mortgages.

   Sources 6 · Mortgagee Letter 2025-09 (March 26, 2025): 'removes the Non-permanent Residents sections in its entirety'; 'eliminating eligibility for non-permanent resident Borrowers'; 'must be implemented for FHA case numbers assigned on or after May 25, 2025'; 'A Borrower with lawful permanent resident status may be eligible for FHA-insured financing provided the Borrower satisfies the same requirements, terms, and conditions as those for U.S. citizens'; 'the Republic of the Marshall Islands, or the Republic of Palau'; 'A Social Security card is not sufficient to prove immigration'; 'Home Equity Conversion Mortgage (HECM) programs' · Checked October 17, 2026

8. FHA Handbook 4000.1, in its version last revised August 12, 2026, lists the categories eligible for FHA purchase loans in its residency requirements: permanent residents and citizens of Micronesia, the Marshall Islands and Palau.

   Sources 7 · Handbook 4000.1 (Last Revised: 8/12/2026), II.A.1.b.ii(A)(9) Residency Requirements: 'The following categories of individuals are eligible for FHA-insured financing in accordance with the requirements set forth below'; 'Permanent Residents'; 'Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau' · Checked October 17, 2026

9. Fannie Mae's Selling Guide requires each borrower to have a valid Social Security number or ITIN, in addition to meeting legal residency and documentation requirements; and the lender must confirm each borrower's identity before extending credit.

   Sources 8 · Selling Guide B2-2-01, General Borrower Eligibility Requirements (09/03/2025): 'requires that each borrower have a valid Social Security number or Individual Taxpayer Identification Number (ITIN), in addition to meeting existing legal residency and documentation requirements'; 'Lenders must confirm each borrower's identity prior to the extension of credit' · Checked October 17, 2026

10. Fannie Mae buys mortgages made to non-U.S. citizens who are lawful permanent or non-permanent residents on the same terms available to citizens; it does not specify the exact documentation: the lender determines status based on the circumstances of each case, using documentation it deems appropriate, and by delivering the loan the lender warrants to Fannie Mae that the borrower is legally present in the country.

    Sources 9 · Selling Guide B2-2-02, Non-U.S. Citizen Borrower Eligibility Requirements: 'lawful permanent or non-permanent residents of the United States under the same terms that are available to U.S. citizens'; 'does not specify the precise documentation the lender must obtain'; 'based on the circumstances of the individual case, using documentation it deems appropriate'; 'the lender represents and warrants that the non-U.S. citizen borrower is legally present in this country' · Checked October 17, 2026

11. According to Fannie Mae, the lender must document that income is stable, has a documented history of receipt and is reasonably expected to continue; and borrowers who are not U.S. citizens must meet the same employment and income verification requirements as citizens, regardless of the type or source of income.

    Sources 10 · Selling Guide B3-3.1-01, General Income Information (10/07/2026): 'The lender must document income is stable, has a documented history of receipt, and is reasonably expected to continue'; 'Borrowers who are not U.S. citizens must meet the same employment and income verification requirements that are required for borrowers who are U.S. citizens, regardless of the type or source of income' · Checked October 17, 2026

12. According to Fannie Mae, HomeReady is a conventional mortgage for borrowers who meet certain income criteria: the loan can reach a loan-to-value ratio of 95.01% to 97% (a down payment from 3%) on purchases of a one-unit principal residence with a fixed rate of up to 30 years, and total annual qualifying income may not exceed 80% of the area median income.

    Sources 11 · Selling Guide B5-6-01, HomeReady Mortgage Loan and Borrower Eligibility: 'a conventional community lending mortgage that offers underwriting flexibilities to qualified borrowers who meet specific income criteria'; 'LTV, CLTV, or HCLTV Ratio 95.01 to 97%'; 'Fixed-rate loans with terms up to 30 years'; 'One-unit principal residence'; 'the total annual qualifying income may not exceed 80% of the AMI for the property's location' · Checked October 17, 2026

13. For the USDA Single Family Housing Guaranteed Loan, applicants must provide evidence acceptable to the agency that they are U.S. citizens, U.S. non-citizen nationals or 'qualified aliens', as defined in §3555.10.

    Sources 12 · 7 CFR §3555.151(b), Citizenship status: 'Applicants must provide evidence acceptable to the Agency of their status as United States citizens, U.S. non-citizen nationals, or qualified aliens, as defined in § 3555.10' · Checked October 17, 2026

14. The USDA regulation points to section 401 of the 1996 PRWORA law (8 U.S.C. §1641) for the definition of 'qualified alien'.

    Sources 13 · 7 CFR §3555.10, Definitions: 'Qualified alien. See the definition of the term under Section 401 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (PRWORA) (8 U.S.C. 1641)' · Checked October 17, 2026

15. Under 8 U.S.C. §1641(b), a 'qualified alien' includes, among others: a lawful permanent resident; a person granted asylum; a refugee; a person paroled under section 212(d)(5) for a period of at least 1 year; a person whose deportation is being withheld; a Cuban or Haitian entrant; and a person who lawfully resides in the U.S. under a Compact of Free Association.

    Sources 14 · 8 U.S.C. §1641(b): 'an alien who is lawfully admitted for permanent residence'; 'an alien who is granted asylum'; 'a refugee who is admitted to the United States'; 'paroled into the United States under section 212(d)(5) of such Act'; 'for a period of at least 1 year'; 'an alien whose deportation is being withheld'; 'Cuban and Haitian entrant'; 'in accordance with a Compact of Free Association' · Checked October 17, 2026

16. Under Regulation B (Equal Credit Opportunity Act), a creditor may consider the applicant's immigration status or status as a permanent resident, and any additional information needed to know its rights and remedies regarding repayment.

    Sources 15 · 12 CFR §1002.6(b)(7), Immigration status: 'A creditor may consider the applicant's immigration status or status as a permanent resident of the United States, and any additional information that may be necessary to ascertain the creditor's rights and remedies regarding repayment' · Checked October 17, 2026

17. Under Regulation B, a creditor may inquire about the permanent residency and immigration status of an applicant or any other person in connection with a credit transaction.

    Sources 16 · 12 CFR §1002.5(e), Permanent residency and immigration status: 'A creditor may inquire about the permanent residency and immigration status of an applicant or any other person in connection with a credit transaction' · Checked October 17, 2026

18. The Equal Credit Opportunity Act makes it unlawful for a creditor to discriminate against an applicant in any aspect of a credit transaction on the basis of race, color, religion, national origin, sex, marital status or age.

    Sources 17 · 15 U.S.C. §1691(a): 'It shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction'; 'on the basis of race, color, religion, national origin, sex or marital status, or age' · Checked October 17, 2026

19. According to the Justice Department's Civil Rights Division, national origin discrimination can be based on the country of a person's birth or where their ancestors originated; and the Department has sued lenders under the Fair Housing Act and the Equal Credit Opportunity Act when they imposed stricter underwriting standards or made loans on less favorable terms for Hispanic borrowers.

    Sources 18 · The Fair Housing Act (Civil Rights Division): 'Such discrimination can be based either upon the country of an individual's birth or where his or her ancestors originated'; 'when they have imposed more stringent underwriting standards on home loans or made loans on less favorable terms for Hispanic borrowers' · Checked October 17, 2026

20. The Illinois Department of Human Rights explains that the Illinois Human Rights Act prohibits using a person's immigration status to discriminate against them when renting, buying a home or applying for a mortgage; that examples of immigration status include people with TPS, deferred action and DACA; and that housing discrimination based on immigration status can be reported to the Department within one year.

    Sources 19 · Immigration Status & Housing FAQ, questions 2, 3 and 11: 'prohibits housing providers from using a person's'; 'when renting an apartment, buying a home, applying for a mortgage, or receiving housing-related services'; 'Temporary Protected Status (TPS)'; 'Deferred action recipients'; 'Deferred Action for Childhood Arrival (DACA) recipients'; 'within one year from the date when the discrimination occurred' · Checked October 17, 2026

21. The CFPB recommends contacting several lenders, because borrowers who shop around can save thousands of dollars and different lenders can offer different kinds of loans; it suggests starting with your local bank or credit union, says a housing counselor can help you identify lenders and recommends contacting at least three.

    Sources 20 · Contact multiple lenders: 'Contact several different lenders'; 'Borrowers who shop around can save thousands of dollars'; 'Different lenders can also offer different kinds of loans'; 'contact your local bank or credit union and other lenders that serve your area'; 'A housing counselor can also be a good resource to help you figure out how to identify lenders'; 'Contact at least three lenders on your list' · Checked October 17, 2026

22. According to the CFPB, the lender must give you the Loan Estimate within three business days of receiving your application; all lenders must use the same form, which makes comparing easier; and when you receive it, the lender has not yet approved or denied your application.

    Sources 21 · What is a Loan Estimate?: 'The lender must provide you a Loan Estimate within three business days of receiving your application'; 'All lenders are required to use the same standard Loan Estimate form'; 'the lender has not yet approved or denied your loan application' · Checked October 17, 2026

23. Freddie Mac says you should typically be prepared to pay between 2% and 5% of the home purchase price in closing costs.

    Sources 22 · What Are Closing Costs and How Much Will I Pay?: 'Typically, you should be prepared to pay between 2% and 5% of the home purchase price in closing fees' · Checked October 17, 2026

24. HUD-approved housing counselors give independent advice on buying a home and on whether a set of loan terms fits your goals, often at little or no cost.

    Sources 23 · Find a Housing Counselor: 'advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'whether a particular set of mortgage loan terms is a good fit based on your objectives and circumstances'; 'often at little or no cost to you' · Checked October 17, 2026

25. According to the Justice Department's Executive Office for Immigration Review (EOIR), only certain people can represent you, including licensed attorneys and accredited representatives; notarios, document preparers, immigration consultants and travel agents are not allowed to practice law or give you legal advice.

    Sources 24 · Can Someone Represent You Before EOIR?: 'Only certain individuals can represent you before EOIR'; 'Those include validly licensed attorneys and accredited representatives'; 'Notarios, document preparers, immigration consultants, and travel agents are not allowed to practice law'; 'They cannot give you legal advice' · Checked October 17, 2026

26. EOIR publishes the lists of recognized organizations and accredited representatives, also sorted by state.

    Sources 25 · Recognition & Accreditation (R&A) Program, roster reports: 'Recognized Organizations List'; 'Accredited Representatives List'; 'Organizations and Representatives, Listed by State' · Checked October 17, 2026