Yes, there are mortgages available for Dreamers. You want to believe it or not, the process is easier than you may have thought. When looking for a DACA mortgage, it is vital that you bring the right information and work with the right mortgage lender.
You may have been denied for other loans in the past because of your unlawful entry in the U.S., but you can apply for DACA mortgage loans in Houston and fulfill your dream of homeownership. Here are a few things that you should know before applying for a DACA home loan program –
1. Save for down payment
The down payment requirement varies a loan program to another one. While some loans have a huge down payment requirement, other loans have lenient requirements. However, the decent down payment amount you can come with, the lesser you need to borrow from the lender. Besides, there will be a possibility to get approval for the best interest rate. So, before you apply for a DACA home loan, save as much as possible for the down payment.
2. Improve your credit score
Before you apply for a DACA home loan, you should check your credit score from the three major credit bureaus of the U.S. What is your credit score? Is it not up-to-the-mark? Then, you should take steps to improve it. This is because your credit score reflects your creditworthiness, the higher the score, the better creditworthy you will be. Steps, such as clearing your debts on time, not applying for any new credit, and checking for mistakes and correcting it if there are any can boost your credit score and make it easy for you to get approval.
3. Know the documents required
Like any other home loan program, DACA loans also need some documents from the homebuyers. So, you need to know what the documents are and come with these to get approval. Generally, the documents will verify your employment and residency status. The documents you should come with are current Employment Authorization Document, Social Security Number, previous expired EAD card, bank statements, additional income documents, etc.
4. Shop for lenders
You have decided to choose the very first lender you come in contact with and apply for a DACA loan. Don’t make this mistake. You should keep this in mind that the DACA loan requirements can vary from lenders to lenders. While the local lender is asking for a high credit score and down payment for approving your loan, another lender may be ready to approve your DACA loan with a lenient requirement. So, if you want to have the best deal for a DACA loan, you should ask for quotes from different lenders, compare it, and then make a decision.
So, you should save for a decent down payment, improve your credit score, prepare the required documents, and shop for lenders before applying for a DACA loan program. So, follow these steps to be a gainer with this loan.
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