Deferred Action for Childhood Arrivals or DACA is a kind of administrative relief from deportation. The objective of DACA is to guard eligible immigrant youth, who came to the US when they were children from deportation. DACA offers young undocumented immigrants protection from deportation and a work permit.
If you are a DACA recipient, you can also opt for DACA mortgage loans in Houston and buy your dream home. However, are the myths spreading around preventing you from applying for this loan program? Then, read on to know the myths and reality.
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DACA recipients cannot buy a home
It is completely a wrong belief. Being a DACA recipient, you can get a home loan and fulfill your dream of homeownership. Regardless of your residential status in the U.S., there are virtually no limits on who can buy and own a property in the U.S. So, it means you can buy a home. However, the ability of a DACA recipient to secure a mortgage in the U.S. is limited. And there are only a few assistance programs available to help you with the purchase of a home.
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Applying for DACA mortgage loan is too difficult
Well, like the first one, it is also a misconception. Once you find a home to purchase and a lender, you can start your application. The application can ask you a few general questions regarding your employment, income and personal information and details about the property. During the application, a borrower is asked whether he or she is a U.S. citizen or a lawful permanent resident. You should provide an honest answer to make the entire procedure easy and effective for you.
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No documents are required for a DACA mortgage
Home loan programs always require some documents, and it is applicable for a DACA loan too. So, there is no reason to trust the myth. Receiving DACA home loans will only be possible if you provide some documents. These documents will help to verify your employment and residency status. While Current Employment Authorization Document (EAD) verifies your ability to work in the U.S., the Social Security Number (SSN) verifies the number of years you spent in the workplace, and bank statements will help to establish a history of consistent income. Besides, you may need to input some additional income documents. So, you have to ensure that you can complete the documentation procedure to get the home loan.
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Credit score does not matter in DACA loans
It is an absolutely wrong belief. As credit score reflects your creditworthiness or how trustworthy you would be as a lender, it is one of the vital things that the lender will check before approving your DACA mortgage loan application. A better credit score shows higher creditworthiness while lower score damages your reputation as a borrower. If your score is too low, it might be difficult for you to get a home loan. So, keep this in mind that credit score matters a lot, and if your score is low, you should take steps to improve this.
Do you have any more confusion? Are you saying no? Then, opt for a mortgage lender and apply for the loan program today.
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.
