DACA status is a Visa status (C33) that is offered to children who were brought to the US without a Visa by their parents but have been living here for a long time. When the children grow old and earn well, they want to buy a home of their own. This is where the DACA program or ‘Deferred Action for Childhood Arrivals’ is useful for you.
But before you opt for DACA mortgage loans in Houston, you may like to familiar with the advantages of these loans. Here are these –
- No mortgage insurance for 20% or greater down payment
PMI, also familiar as private mortgage insurance, is a mortgage lender’s perception in the event that you default on your primary mortgage, and the home goes into foreclosure. When the lenders look at the loans as a riskier investment, they ask the borrowers to take out PMI. Usually, it is paid monthly as part of the overall mortgage payment to the lender. Being a DACA recipient, when you apply for a home loan program and come with 20% or more than that for a down payment, you don’t require to pay mortgage insurance or PMI. So, you save more for the down payment and come with a decent one, you don’t have to worry about the insurance payment, and you can save a lot.
- Flexible PMI options for loans with less than 20% down payment
Even if it is not possible for you to manage a 20% or more down payment, you don’t have to worry. You will have to pay the PMI but as it is a flexible one, it will not be a burden for you. You can treat it in your own way and pay the PMI. It is another great advantage that only DACA recipients can get when they apply for a home loan program.
- Available to buy second homes or investment properties
Another benefit of availing this loan program is that one can use it for purchasing another home. For example, if you have already bought a home, and now, want to purchase another one, and looking for financing for that home, you can easily apply for a mortgage loan program as a DACA recipient. While other home loan programs hardly offer this benefit, it is available with DACA recipient home loan programs.
- Greater loan limits than FHA loans
Insured by the Federal Housing Administration, FHA loans are specially designed for first-time home buyers. Though it allows one to get a loan with as low as a 3.5% down payment and 500 credit score, there is a loan limit, and so, you can’t get a hefty amount as a loan. But there is no such limitation with a DACA home loan. With this, you can even apply for a bulky loan amount. So, if you dream to buy a big home for your family, this loan will finance the amount. So, there is no reason to worry at all.
So, if you are convinced about DACA home loan programs, then apply for it today.
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.