Are you a DREAMer or Deferred Action for Childhood Arrivals? People who are DACA recipients usually face certain financial barriers. From buying a home to finding a mortgage, the challenges are likely to overwhelm you. When you are not a student and have found a job, it is the perfect time to settle down. The normal avenues for a DACA buyer are still not open – FHA loans are still off their list. You can qualify for the DACA loans once you have undertaken the necessary preparation.
DACA recipients are acceptable for mortgage programs like Fannie Mae. Even if they are worried about having a low income, things might run smoothly. Further, first-time borrowers can benefit out on a large scale. When you thought there was no hope for a mortgage, things took a great turn. The home loans for DACA recipients in Houston, TX indeed can help you secure homeownership. Of course, the political uncertainty puts a dent in your plan of getting an FHA loan. Nevertheless, you can still live your American Dream without any fuss.
Before you jump into the process, remember you need to secure a few things. Let’s find out the top tips mentioned below.
Secure Your Credit Score
Good credit is an essential factor for qualifying for a house loan. Your first task is to find out the FICO scores and check the report. If there are wrong entries or other errors, this could affect the process of determining your future. This affects deciding the mortgage rate and your acceptance. Of course, a DACA lender’s requirement is what you should keep in mind, too. As you are a DACA borrower, it’s better to keep your scores higher. At least, make sure you are in the good-credit range.
Fix a Budget before Anything
You should not dive into a mortgage process without having a home loan. Lenders always want to ensure that you can pay off the loan within the term. You can use a home loan calculator and check how much the monthly mortgage payments are going to look. This will give you a clear insight into how much you can actually afford. If you borrow more than you can afford, it will create a much bigger problem. So, the major factors for your budget are utilities, loan interest, homeowner’s association fees, property taxes, and mortgage principal. Also, find out the percentage of down payment you can afford.
Before you finalize what you are going to do, check whether you are eligible for the DACA program. Your DACA status might disqualify you for certain loan programs. Nonetheless, secure a few things which help you improve your scopes of approval. Shop around to get the best deals. Choose a lender who has years of experience in working with DACA borrowers. Also, prepare the paperwork if you want to avoid delays in the loan process. When you have everything ready, the mortgage process is likely to run smoothly. So, start the preparation as early as you can while in Houston!