Deferred Action for Childhood Arrivals (DACA) is a type of administrative relief that saves one from deportation. The purpose is to protect eligible immigrant youth from deportation and provide a work permit. This status also helps one fulfill his or her dream of homeownership. Have you come to the U.S. in your childhood with your parents unlawfully? Do you want to buy a home now? Then, a DACA status can help you get mortgage approval.
Opt for the lenders who offer home loans for DACA recipients in Houston, TX, and get financial aid. But are the myths about DACA loans creating doubts in your mind? Here, we have debunked a few myths for you –
- A self-employed DACA recipient can’t get approval for a loan
No, it is not true in terms of home loans for DACA recipients. Some homebuyers are in the concept that one needs to have more than 2 years of consistent work history to get a loan. But that is not true. Based on your credit score, legal status, income, employment history, as well as other qualifying factors, mortgage lenders will offer you loan options. And you can get approval for a home loan.
- A DACA recipient can get an FHA loan
Well, it is not true, at least when you follow the guidelines of HUD. FHA loans are approved by following the guidelines of HUD. And according to HUD, legally DACA recipients are not residents of the United States. For this, they can’t get these loans. Mortgage lenders follow the guidelines of HUD and so, they will not get approval for an FHA loan to DACA recipient.
- It is not possible to get approval for a conventional loan
It is nothing but a myth. Although DACA recipients can’t get approval for an FHA loan, they can get approval for conventional home loans. You can buy a single-family to multi-unit home with this loan. And for this, all that you need to do is to come with the required documents, a decent down payment, and a credit score. When you come with all these, you can get approval easily.
- There is a lot of paperwork associated with the loan
Nothing but a misconception! Being a DACA beneficiary does not necessarily affect the amount of paperwork or documentation needed to get a mortgage. DACA homebuyers don’t need to fill out additional paperwork for their DACA status. You need to come with general documents, including a non-expired Employment Authorization Document (EAD), Social Security card, employment verification status, pay stubs, bank statements. Some lenders may ask for a few more documents. So, it would be better to ask your lender about the documents before applying for a mortgage.
So, you understand all that you heard about the DACA loan is not true. As the facts are unveiled, now, start working to achieve your dream of homeownership.