Authorities require authorities to have permanent residency in the United States, so undocumented immigrants will soon be unqualified to apply for the popular federal mortgage program.
A Federal Housing Administration (FHA) loan is a government insurance mortgage that paves the way low-income people buy a home, including people with deferred behavior for childhood arrival situations.
However, the U.S. Housing and Urban Development Agency will require permanent residency from applicants starting March 25, making it less choice for undocumented people.
The Housing and Urban Development Agency added that pending asylum and people with refugee status are not applicable either.
“This is a go-to program for anyone looking to buy their first home,” said real estate agent Jesus Lauren, explaining that FHA loans are often the only option for first-time buyers. “It definitely affects people who can’t qualify for homes with a 3.5% FHA payment.”
Loans with low down payment requirements and sometimes low interest rates are popular among undocumented immigrants, including DACA recipients who called the US home because they were brought to the US by their parents without documentation.
“Anyone who does not have permanent residency will be a major figure to be affected by the new policy,” Lauren said.
Nancy Calco is one of those who have dreams of buying a house due to pending rules that have seen another obstacle.
“Our dreams have stopped,” Calco said.
People like Calco can still seek traditional loan programs, but that would require a higher credit score (at least 620) and a 20% down payment to avoid purchasing private mortgage insurance. A 20% down payment could be a tough swing when the median price of a home listed in LA County reaches $999,000 in February.
Earlier this year, the Department of Housing and Urban Development said it was working with the Department of Homeland Security to ban undocumented immigrants from public housing.
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