2 Viral Tips on How to Get Home Loans for DACA Recipients in Houston

Real Estate

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October 8, 2020

If you thought selecting a house is a crucial process, you have no idea about a home loan. Just like any other mortgage process, getting a DACA loan can be difficult. Moreover, the entire DACA loan process can be a stressful experience if you ignore the preparation part. First of all, many DREAMERs dwell in a misconception that they can apply for FHA loans. Unfortunately, HUD does not regard a lawful status to the DACA recipients. This turns out to be a major issue when a borrower expects to pass the eligibility criteria with 500 credits and put down 3.5% of the loan value.

As a first-time homebuyer, you would like to know how the process of home loans for DACA recipients in Houston, TX is going to unfold. Even though FHA loans are off-limits, you will be eligible for a mortgage. If you can prove you are a legal citizen of the country, you will take the stepping stone of the home-buying process. Provide your social security number and proof of EAD; be on your toes for the paperwork. However, there are other things to keep in mind. Let’s take a look at the necessary tips on how to prepare for the DACA home loans.

Income history and home-buying process

Every lender does not show the same degree of enthusiasm for helping DACA recipients to achieve their dream. Even if they do, a set of rules must be followed. Lenders who choose to allow DREAMERs usually put a focus on employment history. The borrowers need to show evidence of the Employment Authorization Document which the U.S. Citizenship and Immigration Services issues. Besides this, the private lender takes the sources of income into account. A steady income is pivotal for passing the eligibility requirement since your total earning power is an indication of your ability to repay. The DACA lender might also ask for bank account information, pay stubs, and W-2s.

Down payment to make for a loan

Have you decided on how much you can afford to put down? As you are looking at a DACA mortgage, the lender would allow a 20% down payment with no mortgage insurance. A 20% down payment is the smartest way to get rid of private mortgage insurance.  The PMI acts as a shield to your private lender when you default on the mortgage. It is possible to discard the private mortgage insurance once you have 20% equity in the property. Even though 20% is a standard percentage, ask your lender how much of down payment you need to make.

Now, you must be wondering where you can find a lender who is willing to offer DACA mortgages. It might not be easy to spot them; however, local DACA lenders in Houston are up for the program. Shop around, get quotes from multiple lenders, and ask upfront – these 3 steps can save you from significant challenges later. After finding a suitable lender, don’t forget to get pre-approved. So, remember the previously mentioned tips and fulfill your dream of homeownership!

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Last modified: October 8, 2020

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