During the presidency of Barack Obama, the DACA program started out for the children of immigrants. Approximately, 8,00,000 people enrolled in the program for entering the country under the age of 18. In order to provide the participants with a chance of living their American dreams, there are home loans. Generally, most of them have shaky employment options and the mortgage is way to give them much-needed hope. However, not every DACA recipient is aware of the house loan that can promise homeownership one day.
Now, the home loans for DACA recipients in Houston, TX face several myths and misconceptions. The first misconception that the people face is that the DACA recipients are not allowed for purchasing a home. There is ongoing political turmoil regarding the loan but the lenders are willing to proceed with the mortgage as per the government guidelines. Running a background check on the employment history, legal status, income, credit score, and other factors, the professional lender declares the person’s eligibility. Apart from this, there are other myths revolving around the useful mortgage option. Keep an eye on the following list of myths and misconceptions below.
Myth #1: The paperwork for a home loan will give you a headache
If you had been a regular borrower going for an FHA loan, the paperwork would not worry you. Similarly, there is no elaborate paperwork involved in the mortgage for DACA recipients. Hence, you need not go through unnecessary documentation to be eligible for the residential status. You may be asked to submit the following documents,
- Authentic SSN validated by the Social Security Administration
- Proof of employment authorization document provided by U.S Citizenship and Immigrant Services
- Bank statements for a certain period
- Regular terms and conditions applied for U.S. citizens as well
Myth #2: Work History is not Necessary
As mentioned earlier, the loan program asks for work history to successfully get through the mortgage. In order to prove eligibility, the employee needs to show 2 years of employment at least. However, there are many people with a limited work history. It is important to discuss the matter with the lender if the work history could be an obstacle for qualifying.
Myth #3: You do not Need a Local Lender
This is another misconception going around that the local lenders cannot offer the home loan due to the DACA status. On the other hand, you may face troubles from the bank while applying for the home loan for DACA recipients. In many cases, the loans have been denied right away. The local lenders of Houston help borrowers with poor credit scores as well. On top of it, the professional lender provides flexible PMI options if the borrower puts 20% down payment. You can also get higher loan limits than FHA loans.
Now, you know the truths and half-truths about home loans for DACA recipients; you can easily proceed with the loan application. Of course, don’t forget to seek help from the professional lenders in Houston!
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.