The US mortgage market has reached a new level by offering different loan programs for various candidates. For example, not every borrower qualifies for conventional loans. Many individuals can only apply for special programs due to their citizenship status. The situation of the DACA recipients is quite similar. They cannot apply for the most popular government-backed loan, FHA, but the DREAMERs are eligible for the DACA loans. In case you also hold the same status, you need to know how the loan application runs.
So, yes, home loans for DACA recipients in Houston, TX exist. The mortgage applications are much easier than you could ever think. If looking for a DACA home loan, make sure you have adequate information regarding the process from the lender. When you face rejection for the loan due to your status of Deferred Action for Childhood Arrivals, do not lose hope yet. Instead of sulking over the refusals, explore the DACA loan option. Let’s read over the quick tips which ensure a seamless home loan experience.
Knowing how much you can afford
Before you set your eye on a house, always figure out whether you have the capacity to afford it in the first place. Find a way to get a ballpark number by utilizing the rule of 28/36. Make sure your DTI ratio comes into play. For instance, 50% of the debt-to-income ratio indicates that half of your pre-tax income goes into debt repayment. There is a front-end debt-to-income ratio which needs to be below 28%. Then the back-end ratio covers the home loan and other payments – this should not go above 43% and remain below 36%. When the DTI is on the rise, focus on minimizing the current debt.
Many DACA borrowers feel that the loan payment is confusing. They need to figure out homeowners association fees, property taxes, interest rates, and what-not! A down payment is another one you need to consider for private mortgage insurance.
Qualifying for the DACA mortgage
DREAMERs are eligible for a home loan purchase. You may feel that there are not enough options; only a particular type of mortgage is available. It is a great idea to kick off the process with a mortgage lender. Ask the private lender who provides a suitable option and helps you become eligible. A lawful non-permanent citizen is eligible for every type of home loan, including conventional and government-backed mortgages. However, the DACA mortgage is quite vague in comparison to other options. Political uncertainty is a factor, and it influences the DACA system. Currently, DACA does not assure a lawful status to the individuals in the United States. However, private lenders can find the right option and help you with the DACA mortgage application process.
Before everything, check your credit scores and know whether you have the ability to repay the mortgage. Work on your credit score and do your homework before submitting the loan application. Of course, keep looking for a mortgage lender who has a long experience in home loans for DACA in Houston.