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ARTICLE · 14 JUNE 2021

FHA Issues Guidance On Eligibility Of DACA Recipients

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As we detailed in our prior Legal Update, on January 19, 2021, the FHA expanded eligibility to apply for FHA-insured mortgages to individuals residing in the United States under the DACA program...

United StatesFinance and Banking
Krista Cooley
Krista Cooley
Tori K. Shinohara
Tori K. Shinohara
Kerri Elizabeth Webb
Kerri Elizabeth Webb
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As we detailed in our prior  Legal Update, on January 19, 2021, the FHA expanded eligibility to apply for FHA-insured mortgages to individuals residing in the United States under the DACA program by waiving certain FHA Handbook requirements.1  On May 28, 2021, the FHA published  Mortgagee Letter 2021-12, which clarifies FHA's existing eligibility requirements for DACA participants and other non-permanent residents who apply for FHA loans and implements the eligibility requirements instituted by the prior waiver into the HUD Handbook.2

Specifically, non-permanent residents, including DACA participants, individuals with refugee or asylee status, citizens of the Freely Associated States (“FAS”)3 and individuals with an H-1B visa, must meet the following requirements:

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