3 Myths about Home Loans that DACA Recipients have been Believing in Houston
When you entered the country with your parents and family members, you barely understood the meaning of the American dream. As time passed by, you have started to grasp its meaning and nurture the much-cherished dream. Many DACA recipients do not get the luxury to live in their houses until they grow up. Unless they purchase their dream abode, the dream remains unfulfilled.
To push them an inch forward their dream, the home loans for DACA recipients in Houston, TX play a big role. Unfortunately, many Dreamers do not look beyond the myths and forget about the ultimate dream. House loans are helpful financing tools that ease the process of buying a home. So, let’s debunk the common myths about mortgages for DACA borrowers in Houston.
Myth #1: DACA recipients can apply for FHA loans
This is false after 2019 because DACA borrowers are ineligible for the FHA loans. HUD does not consider the recipients as lawful US citizens. And private lenders follow the rules set by the HUD. If you are going to apply to an FHA-approved lender, your application will be denied. FHA is an integral part of the Department of Housing and Urban Development. And HUD makes the regulations for the FHA loan programs. Now, you cannot get an FHA loan as long as the US Congress clarifies whether your citizenship status.
According to the last updates, Congress has been putting a focus on the Homeownership for the Dreamers Act. When the Act becomes law, the borrowers can access FHA house loans. Using FHA loans can be beneficial as they can put down as low as 3.5%. Also, the credit score requirement is 580.
Myth #2: Loan benefits are not interesting
The mortgage offers higher limits than FHA loan programs. Now it is something interesting to note. You can refinance single-family second houses and buy PUDs, eligible condos, and townhouses. The flexible private mortgage insurances are available when your down payment is lower than 20%. Most importantly, a borrower can invest in particular properties and second homes.
You can also call for co-signers, and there are no first-time homebuyer’s restrictions. Up to 95% financing is available, and the borrower can request funds after paying down his own contribution. You can see how the home loan is designed to help the DACA recipients who have faced rejections for their citizenship status.
Myth #3: DACA recipients are exempted from conventional loans
This is also untrue because DACA borrowers are eligible for conventional loans. According to the policy, they must furnish details of valid EAD and other documents. The loan can help borrowers to purchase a single-family residence and multi-unit property. Before moving into their primary residence with this loan, they can put down 3% of the loan value. Additionally, the borrower must have stable employment and provide the lender with the necessary documents.
In the end, your dream has a way to find its way. Don’t forget to find a professional lender who can shape your dream into reality!