By Phil Ganz
Edited by Ryan Skerritt
In 2025, FHA updated its guidance to restrict eligibility for DACA recipients, meaning borrowers without certain qualifying lawful residency statuses can no longer use FHA-insured loans.
While this change removes FHA as an option, it does not eliminate homeownership pathways in Florida—many buyers can still qualify through conventional, state housing, local assistance, portfolio, and alternative programs that do not rely on FHA insurance.
- The 2025–2026 FHA Policy Change (What Actually Happened)
- Why FHA Loans Were Popular With Florida DACA Buyers
- 10 Better Options for Florida Homebuyers (When FHA Isn’t Available)
- Florida DACA Mortgage Requirements (2026)
- What Florida DACA Buyers Should Look For in a Loan
- FHA Rule & Florida DACA Homebuyer Options FAQs
- Final Thoughts: FHA Is Gone — Florida Options Aren’t
The 2025–2026 FHA Policy Change (What Actually Happened)
In HUD Title I Letter 490, FHA revised its borrower eligibility rules:
- FHA loans are limited to U.S. citizens and lawful permanent residents
- DACA recipients are no longer eligible
- Lenders must verify permanent residency via USCIS documentation
This applies nationwide, including all Florida FHA loans.
Why FHA Loans Were Popular With Florida DACA Buyers
Before the rule change, FHA loans were the most DACA-friendly option in Florida because they offered:
- 3.5% down payments
- Flexible credit standards
- Manual underwriting options
- Broad lender availability
That path is now closed — but Florida buyers still have alternatives.
10 Better Options for Florida Homebuyers (When FHA Isn’t Available)
Even though FHA loans are no longer available to DACA recipients, other financing paths remain open. Here are a few alternatives to explore:
Program rules can change, and eligibility depends on lender policies and documentation.
Conventional Loans (Fannie Mae / Freddie Mac)
Many Florida buyers qualify for conventional financing with competitive rates and down payments as low as 3% (program-dependent). These loans do not use FHA insurance and are widely available through banks and mortgage brokers.
Why it helps: No FHA MIP; broader lender participation.
Florida Housing First-Time Buyer Programs
State programs (e.g., HFA Preferred / HFA Advantage) can pair conventional loans with down-payment and closing-cost assistance for eligible buyers.
Why it helps: Reduces upfront cash even without FHA.
County & City Down-Payment Assistance (DPA)
Local programs across Miami-Dade, Broward, Palm Beach, Orange, Hillsborough, Duval, and others offer grants or deferred loans layered with conventional financing.
Why it helps: Local funds can bridge the down-payment gap.
Portfolio Loans From Florida Lenders
Some Florida banks and credit unions offer portfolio loans (kept in-house) with flexible guidelines.
Why it helps: Lender discretion allows alternatives to agency rules.
Community Development & Employer Programs
Certain community housing organizations and employer-assisted housing programs support workforce buyers with forgivable or deferred assistance.
Why it helps: Tied to employment or community eligibility, not FHA.
ITIN-Based Mortgage Programs
Select Florida lenders offer ITIN loans for borrowers without an SSN, subject to income verification and lender criteria.
Why it helps: A path when traditional documentation differs.
Credit-Union Programs
Florida credit unions sometimes provide member-only mortgages with flexible terms and lower fees
Why it helps: Relationship-based underwriting and local focus.
Co-Borrower / Non-Occupant Co-Borrower Structures
Adding a qualified co-borrower (where allowed) can strengthen income and credit to meet conventional guidelines.
Why it helps: Improves approval odds without FHA.
Seller Credits & Rate Buydowns
Negotiating seller concessions or temporary rate buydowns can reduce upfront and monthly costs on non-FHA loans.
Why it helps: Offsets affordability without FHA assistance.
Waiting + Credit Optimization Strategy
For buyers close to qualifying, a short credit improvement plan (paydowns, corrections) can unlock conventional approval.
Why it helps: Converts near-misses into approvals quickly.
Florida DACA Mortgage Requirements (2026)
This section outlines the core documentation and underwriting expectations Florida lenders use when reviewing mortgage applications from DACA recipients in 2026.
While FHA loans are no longer available, meeting these requirements can help you qualify for conventional, ITIN, or portfolio loan programs still offered across Florida.
| Requirement | Florida Lender Expectation |
|---|---|
| EAD (C33) | Must be valid and renewable; lenders often review renewal history |
| SSN or ITIN | Required to complete underwriting and tax documentation |
| Credit Score | 620+ preferred for conventional loans; some portfolio lenders allow flexibility |
| Income | Verifiable, stable income with consistent employment history |
| Debt-to-Income (DTI) | Ideally under 43%, though higher may be allowed with compensating factors |
| Occupancy | Must be a primary residence (no investment or vacation properties) |
| Lender Experience | Critical — lender must be familiar with DACA and non-permanent resident guidelines |
What Florida DACA Buyers Should Look For in a Loan
When choosing a mortgage as a DACA recipient, here are key factors to consider:
- Residency Requirements: Does the lender accept DACA status or require permanent residency?
- Down Payment: Look for low down payment options like 3-5% or grants that cover it.
- Credit Flexibility: Some programs allow non-traditional credit history or lower scores.
- Mortgage Insurance Costs: Consider PMI or alternative insurance fees that affect your monthly payment.
- Documentation Needed: Confirm what proof of work status or income is required (EAD, ITIN, etc.).
By focusing on these factors, you can find a program that fits your financial situation and legal status.
FHA Rule & Florida DACA Homebuyer Options FAQs
Answers to common questions about the FHA rule change, how it affects Florida homebuyers, and which alternative mortgage and assistance options may still be available.
Does the FHA rule mean DACA recipients can’t buy homes in Florida?
No. The rule limits access to FHA-insured loans, but many Florida homebuyers still qualify through conventional loans, state and local assistance programs, portfolio loans, and other non-FHA options.
Are conventional loans available without FHA?
Yes. Conventional mortgages do not rely on FHA insurance and are widely available in Florida through banks, credit unions, and mortgage brokers.
Can down payment assistance be used without an FHA loan?
In many cases, yes. Florida state, county, and city down payment assistance programs can often be paired with conventional loans, depending on program guidelines.
Are ITIN mortgage loans allowed in Florida?
Some Florida lenders offer ITIN-based mortgage programs. Eligibility, documentation, rates, and terms vary by lender and program.
Will non-FHA loan options have higher interest rates?
Rates depend on credit profile, down payment, and lender guidelines. Some non-FHA options may price higher, while others can be competitive.
Final Thoughts: FHA Is Gone — Florida Options Aren’t
The FHA rule change was a setback — not a stop sign. Florida remains one of the most accessible states for DACA homebuyers if you choose the right program and lender.
If you’re serious about buying in Florida in 2026, the path still exists — it just looks different.
With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.
About Author - Phil Ganz
Phil Ganz has over 20+ years of experience in the residential financing space. With over a billion dollars of funded loans, Phil helps homebuyers configure the perfect mortgage plan. Whether it's your first home, a complex multiple-property purchase, or anything in between, Phil has the experience to help you achieve your goals.
About Editor - Ryan Skerritt
Ryan Skerritt has over 10+ years of experience in the residential financing space. With over two hundred and fifty million of funded loan volume, Ryan has the skill set to help any homebuyer configure the perfect mortgage plan.
