Follow these 2 Simple Tips before Gaining Access to DACA Mortgages in Houston

Owning a permanent house is your life-long dream, and do not let any political debate get in the way. DACA recipients are still eligible for the home loans even if FHA has declined their request. So, just like everyone else in the US, you can still live your dream to the fullest. A handful of mortgage lenders may turn your loan application but this does not draw the final line. Many lenders have years of experience in closing loans for the Dreamers. After finishing college and getting a dream job, it is the best time to settle down, right? Even though the government-backed loans do not support your goal, conventional loans with adequate benefits will make things easier.

For example, Fannie Mae is a popular option for DACA buyers. Putting as little as 3 percent down, you can enter the abode of your dream. Not every lender follows up with a mortgage to a DACA buyer but Fannie Mae bridges the need to a great extent. Before deciding on the ideal mortgage, you should gather a few pieces of advice and information to walk through the process smoothly. After all, the large financial institutions do not open accounts for the DACA clients, not even for savings accounts. So, it is of utmost importance to work with a lender who is willing to issue the home loan.

So, let’s find out the important tips about DACA mortgage loans in Houston here.

You can Choose to Avoid PMI

Private mortgage insurance or PMI is the price every borrower has to pay if they are going to choose a mortgage from a commercial lender. PMI is only applicable when the borrowers are choosing less than 20% down payment. But why should you pay for private mortgage insurance? PMI insures the lender if the borrower defaults on the loan. When the borrowers choose for 20% down payment, they are instantly considered to be high-risk borrowers. By putting less than 20% of the loan value, it might take years until the entire equity of the house touches 20%. Putting 20% also reduces the monthly payment.

Be Ready with Documents

Just like any other home loan on earth, DACA mortgages require particular documents and information. So, you should check whether you have a valid social security number and EAD. The United States Citizenship and Immigration Services issues Employment Authorization Document, and the card needs to have a C33 section. In case, EAD has expired, remember to bring the previous one. These documents only validate that you are applying as a DACA recipient. For passing the loan procedure, you should gather documents specified by the lender. Basic documents are necessary, and start gathering the federal income tax returns, copies of pay stubs, other information to establish income, or W-2 statements. By arranging the essential documents, Dreamers can get access to ideal home loan products.

Besides keeping these tips in mind, you need to find an experienced lender ready to offer a quality service. So, find a lender and get the house of your dream in a jiffy!

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.

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