Acquiring a home loan is scary. And the process seems much more complex when it comes to homebuyers for DACA recipients. Those who are classified under DACA (Deferred Action for Childhood Arrivals) program undergo a much elaborate process with many questions involved. They are now qualified as legal citizens of the country. This means they can lawfully look for jobs and residency. Even though this has become a widely known fact, many Dreamers are under the wrong impression.
Due to misconceptions, DACA recipients deprive themselves of the right to live the American dream. When they can move into their own abode, many end up paying for rent for the rest of their lives. However, home loans for DACA recipients in Houston, TX are very much available. All you have to do is free your mind from the following myths. Let’s read on.
Myth #1: Home Loans are Unavailable for DACA Recipients
In 2021, DACA borrowers are eligible for mortgages. Even though traditional banks are yet to approve applications, there are multiple alternative options. In order to prove your eligibility for a home loan, you should keep a few requirements in mind.
You need to purchase a primary residence with mortgages. If you want to finance a vacation rental or secondary residence, you might be out of luck. Make sure you have an authentic social security number and can get an Employment Authorization Document from U.S. Citizenship and Immigration Services.
It is important for borrowers to prove that they are eligible to work in the country. Along with meeting these requirements, you need to have at least a credit score of 650.
Myth #2: DACA Recipients are Denied for FHA Loans
Previously, DACA recipients did not make the cut for FHA home loans. The FHA Single Family Housing Handbook stated that non-US citizens were ineligible for FHA-backed home loans. The people categorized under the Deferred Action for Childhood Arrivals program were regarded as unlawful citizens of the United States.
This regulation was imposed until January 19; the new rules rolled out. DACA recipients are considered lawful citizens and have to fulfill the requirements applied to other residents. Of course, it is not that the DACA borrowers did not have access to mortgages before. Conventional loans were there, but they can apply for FHA home loans now.
Myth #3: DACA Borrowers are Ineligible for Conventional Loans
Before the change in HUD policy, DACA recipients could apply for conventional loans through private lenders. Currently, Fannie Mae conforming loans are available for the DACA buyers as long as they have proof of income, an unexpired EAD, and social security number.
Home loans for DACA recipients in Houston, TX provide you with benefits just like any other conforming mortgage in the market. Remember, the requirements vary depending on the lenders. So, work with a lender who is experienced in conventional loans.
In the end, keep your documents ready for a hassle-free experience. Get started today!
