Would you categorize yourself under a nontraditional borrower? If you are an immigrant trying to survive in the land where the dreams are made, you may utilize DACA loans. After all, a home is a pillar of success and a home loan makes your dream come true. In the last 10 years, 10 million borrowers have immigrated to the US. However, the homeownership rates are lower than the immigrants who have been in the States for less than 5 years. In order to put an end to rejected loan applications and nightmares, there is DACA loan program.
Deferred Action for Childhood Arrivals or DACA is a government initiative for illegal immigrants who entered the country before turning 16. As they were minors without the ability to speak up, the loan program helps them to live a fruitful life. Also known as DREAMers, the DACA recipients can get easy financial assistance for a mortgage now. If you need a primary residence, you may resort to home loans for DACA recipients.
Here, we have jotted down important information about the DACA loan programs, go through the rest of the article to know whether you are eligible to apply.
Go through the Eligibility Requirements
The lenders take certain things under consideration to understand whether a borrower can repay the loan. Hence, the customer needs to pass every criterion to get a green flag. That’s why; the lender checks credit history, monthly payments for loan-linked obligations, and monthly loan payment for the covered home loan. Then the company assesses the employment status and this is a crucial option to prove that you can repay again. Additionally, the present assets or income by which the loan will be repaid is also verified. However, the employment status and current income source may be difficult to assess when the DACA recipients are considered.
Keep up a Stable Employment Status
Generally, the lenders ask proof of 2-year employment to declare eligibility. It is mandatory just like other US citizens. This is one of the important ways to prove that you can pay the mortgage back. With the 2-year work history, the borrowers can purchase a house by assuring the lender of his/her capability. Consistent work and steady income may be equivalent to proving whether you can pay the monthly payments on the loan.
Get Hold of Identity Documents
This requirement generally changes from one lender to another. Some lenders may ask the DACA recipients to be eligible for EAD for 1 year after the home loan closes. In another way, the recipient needs to renew EAD for at least one time if it expires within 2 years of home mortgage closing date. It is quite easy to understand that the DACA house loan has different circumstances at the time of proceeding with documentation.
As a DACA recipient, you can also opt for conventional home mortgages. The loans do not ask for much documentation but the interest rate is high. Additionally, the requirement for credit score is also high. It is better to resort to professional lenders and avail a DACA home mortgage.
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.