Buying a home is a long-cherished dream of most people. But to fulfill this, people often face roadblocks. And if you are a DACA recipient, then you may face more difficulties. Worried? Thinking about what to do? Well, don’t be. Now, you can realize your dream with a DACA status. With this status, you can apply for a home loan program and buy a home easily.
When you searched about loans for DACA recipients, have you heard various myths? Are these myths creating doubts in your mind about home loans for DACA recipients in Houston, TX? Well, let us debunk these for you –
- Buying a house is too difficult for a DACA recipient
It is one of the common misconceptions that you can come across when applying for a DACA home loan program. As DACA recipients are not lawful residents of the United States, they often wonder that fulfilling the dream of homeownership is nearly impossible. But it is not true. Some home loan programs can help you to buy a home successfully. And when you come with the right documents, getting approval will be easy for you.
- You can get FHA loans
Another misconception! No DACA recipient can get approved for FHA loans. As DACA does not confer lawful status, DACA recipients can’t get approval for FHA loans. FHA loans are specially designed for the homebuyers who have a legal status to live in the United States and are a first-time homebuyer. So, there is no point to apply for this loan.
- A conventional loan will not be the right choice for you
Nope! Policymakers confirmed in 2019 that DACA recipients are eligible for conventional loans. With this loan, you can buy or refinance different types of homes, including a 1 to 4 unit home. But you should live in the property, and come with at least 3% down payment for a single-family home, at least 580 credit score, and stable employment history of at least 2 years.
- No paperwork is required
No, it is also a myth. You can’t get approval without providing some specific documents. These documents will show your residency status along with employment and make it easy for you to get approval. The must-have documents include the current Employment Authorization document, Social Security number, expired EAD card, bank statements, additional income documents, and more. In some cases, borrowers need to provide some additional documents. Ask your lender about this.
- You can apply to any lender for a home loan
Nothing but a misconception! First of all, all lenders don’t provide all types of home loans. And secondly, all types of lenders will not be ready to approve your loan application for the DACA status. So, you need to search for the lenders who offer home loans to DACA recipients and then apply for the loan to any of them.
All that you hear about home loans for DACA recipients are not true. So, it would be better to verify everything and then decide your next step. And what to do now? Opt for a lender and apply for the loan today!