Now Getting an FHA Loan Just Got Easier

Government agencies have announced changes that allow Dreamers, US Residents with Deferred Childhood Arrivals (DACA) status, to qualify for FHA mortgage loans, as well as extending the mortgage cancellation deadline for people who already have these loans and are struggling to make payments.

Last week, the US Department of Housing and Urban Development (HUD) announced that approximately 700,000 DACA qualified people are now eligible to apply for an FHA mortgage, provided they also have legal permission to work in the US. so that borrowers have a “legal place of residence,” which initially created confusion with lenders. With the change, immigrants are being brought into the country illegally as children can now access these loans.

Federally backed FHA loans have traditionally been used by low-income first-time home buyers because the loan and down payment requirements ( just 3.5% ) for these mortgages are more flexible than regular private loans. Earlier this month, the FHA also announced that it had raised its FHA loan limits to 7.4% for 2021 to keep pace with rising property prices – you can see the new limits here . And if you are thinking of applying for an FHA loan, you can find more information here .

Additional COVID Assistance for FHA Borrowers

In a separate announcement for COVID-related assistance, HUD also announced an extension of the deadline for FHA borrowers to apply and receive a deferred payment. Homeowners financially affected by the pandemic can qualify for a deferral or reduction in mortgage payments for up to six months (although interest is still charged in accordance with the terms of the loan), provided they request it by March 31, 2021. An additional six months can also be extended to the original abstinence period.

Borrowers with FHA-insured mortgages who want more information on the options available should visit the FHA COVID-19 Homeowner Resources web page.

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