Is it possible for non-U.S. citizens to purchase homes? The answer is yes if you are qualified as a DACA recipient. There are a few rules still applied but the purchase can be made possible. As long as you can submit your valid SSN and proof of an EAD, you are good to go. In addition to these documents, you must meet other regular requirements applicable to U.S. citizens. However, residency still affects the home loan. If you have been eyeing for an FHA loan, you must sort out other plans meanwhile. HUD does not confer DACA as a lawful status; hence, the FHA loans are not available. The time will tell whether the recipients can get the benefits of FHA in the future; however, conventional mortgages are available.
Applying for DACA mortgage loans in Houston requires looking after a few things. Without doing the homework, the whole loan application might turn out to be a little difficult. Achieving homeownership is a dream to many, and the dream will come true eventually. Buying a house is a Kodak moment irrespective of anyone’s citizenship status. However, the entire home loan process is quite overwhelming to someone without prior experience. To get hold of a DACA mortgage in the right way, go through the following tips.
Always Get Pre-Approved
Many DACA recipients do not bother about pre-approval but it is a huge mistake. The real estate agents will not consider you as serious if you have not filled up the pre-approval form yet. Getting pre-approval ensures how much you can borrow. The potential homebuyers must assess their financial condition from a lender who offers the pre-approval form. So, if you earn $55,000 yearly, you can get approved for $165,000.
No Thumb Rule to Put down 20%
A part of doing homework about the loan application is to decide on a down payment. The DACA mortgages ask the lenders to put down 20%; however, this is not mandatory. The more you can put down, the better. When a DACA recipient can successfully put down a large chunk, the process is likely to run smoother. Furthermore, the borrower can get hold of better equity, too.
Opt for an Inspection
When you are ready to make an offer on the house, ask a professional to inspect the house. It is important to do this because you will understand whether any repairs are required in the future. This can help you calculate the cost of remodeling or renovation.
Know What You Can Afford
Before rushing off to the DACA mortgage loans, you should know your limit. Many homebuyers do not draw a realistic picture, and this leads to a huge problem later. Keep your foot on the ground and shop around. If you are looking for an amount that requires a 20% down payment but you only have 5%, then you are in trouble. Find out what you can actually afford by using a mortgage calculator.
Now that you have gathered tips about the things to do before applying for a home loan, you can start counting the days!
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.