CBC Mortgage Agency (CBCMA), a nationally chartered housing finance agency and a leading source of down payment assistance for first-time homebuyers, welcomed the U.S. Department of Housing and Urban Development’s decision to allow individuals classified under the “Deferred Action for Childhood Arrivals” program (DACA) to apply for mortgages insured by the Federal Housing Administration. Hispanics, who make up more than 85 percent of all DACA recipients, already account for over one quarter of CBCMA’s borrowers.
The DACA update, which clears up confusion about whether DACA recipients qualify for FHA loans, was outlined Wednesday by HUD in FHA INFO #21-04. HUD stated that homebuyers who are classified as DACA and are legally permitted to work in the U.S. can now begin applying for FHA loans.
“We applaud outgoing HUD Secretary Ben Carson and Deputy Secretary Brian Montgomery for making this important update,” CBC Mortgage Agency President Miki Adams said.
A majority of borrowers who utilize down payment assistance from CBCMA are minorities who often don’t have the financial support of relatives to help them with the cost of buying a home. In addition, they often lack the dinner table discussions with their families about the benefits of homeownership.
“The mission of our CBCMA team is to help those without intergenerational wealth achieve the dream of homeownership,” Adams added, “Because Hispanics already make up more than 26 percent of our community of borrowers, it is very gratifying to be able to expand the number of Latino families we serve as a result of HUD’s decision.”
In addition to offering down payment assistance on FHA-insured mortgages, CBCMA provides prospective homebuyers with free counseling about owning a home before their purchase and for 18 months after they become homeowners.