DACA or the Deferred Action on Childhood Arrivals is a visa status that is given to the ones who came to the United States unlawfully in their childhood. After spending years, when you want to buy a home here, they face difficulties. It is because no lenders want to approve their loan applications. But when they have the visa status, they can apply for a conventional loan and fulfill their dream for homeownership.
But before you proceed and apply for DACA mortgage loans in Houston, you need to familiar with some key facts. Let’s explore these –
- Affordability
Wondering how much house you can afford as a DACA recipient? Well, it is not difficult to know. Just add up your monthly income. Based on how much you make, most mortgage lenders suggest spending not more than 28% to 43% of your income on a home. It includes things like mortgage payments, property and insurance taxes. With FHA loans, which allow you to get approval with a smaller down payment, mortgage insurance becomes part of your monthly mortgage bill budget.
- Home Types
Once you have a clear idea about your home affordability, the next thing that you need to do is to narrow down your house goals. Some of the crucial factors include proximity to your office, the number of family members you have, the cost of living in that area, and more. For some, an apartment will be enough, while others may look for a multi-family home, condo, or something else. Consider your budget and requirement and then start your search for a home.
- Rights as a Homebuyer
Knowing your rights before applying for a home loan program is a must for you. It is because, with these, you can take advantage of the home loans or make decisions when required. Based on your immigration status, the Fair Housing Act forbids others from discriminating against you. Lenders, realtors, or anyone else involved in the process can’t ask about your documentation status.
- Documents Required
Irrespective of the lender that you approach, you will need to provide some documents, as well as information to qualify. Make sure to fill the application correctly. Any wrong input can lower your possibility to get approval. And the documents that you need to come with include a Social Security number, current Employment Authorization document issued by the U.S. Citizenship and Immigration Services (USCIS) in the C33 category, previously expired EAD card/s, proof of income documents to show you can make your monthly mortgage payments, etc. Some lenders can ask for some more documents. Ask your lender about this.
As you are now familiar with the basic facts, start looking for the lenders who offer this loan and apply for it today!
