DACA is a visa status that allows individuals with unlawful presence in the United States to fulfill their dream of homeownership. Have you come to this country in early childhood with your parents and been living here for years? Do you want to buy a house in the U.S. now? Then, a DACA home loan can help you with this.
And as there are several lenders who offer DACA mortgage loans in Houston, getting approval will not be difficult for you. Here are a few things that you should know before applying for this loan –
- Save for the down payment
One of the first and foremost things that you need to do before applying for a DACA home loan is save for down payment – the initial amount that you need to pay to the lender. Though there is a no hard and fast rule regarding the amount of down payment that a borrower should come with, but the higher the amount that you can come with the better it would be for you. Besides, the down payment requirement varies from a lender to another one. With a decent down payment, it would be easier for you to ensure approval. So, save a good amount or opt for a down payment assistance program to come with a decent down payment.
- Improve your credit score
Your credit score shows your creditworthiness to the lender. While a better credit score makes it easier for you to get loan approval, a lower credit score prevents you from getting the loan approval. So, before you apply for a DACA home loan program, you should check your credit score from the three major credit bureaus in the U.S., and if it is not good, you need to take steps to improve the score. You should clear your debts on time, not apply for any further credits, check for mistakes and rectify it if you find any. All these contribute to increasing the credit score that will ultimately assist you to get the approval.
- Show stable employment
Your employment history is another thing that mortgage lenders check before approving a home loan. Generally, lenders want to see 2 years of employment history, and it would be better if it is from the same employer. One can change a job but for a better salary or a higher position. So, before you apply for a loan you should ensure stable employment of 2 years.
- Prepare the documents
To come with the documents, you first check what are the documents that you need to come with. Generally, you will need Social Security Number, Current Employment Authorization Document (EAD card) issued by the U.S. Citizenship and Immigration Services (USCIS) with C33 category, and a previously expired EAD card. So, prepare these before applying for the loan.
- Shop for lenders
All lenders don’t have the same requirement. While one asks for higher credit scores and down payment, another one can ask for a lower credit score and down payment. And you could not understand who is asking for what without checking. So, you should ask for quotes from several lenders, compare these and then opt for the one who is the apt choice for you.
So, you should save as much as possible for the down payment, improve your credit score, show stable employment, prepare the required documents, and shop for lenders to get the best deal for a DACA loan.