5 Myths on DACA Mortgage Loans in Houston


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DACA is a visa status for the ones who come here in their childhood with their parents in an unlawful manner. After years of living here, when the children become adults and start earning, they want to buy houses. But without having proper documentation, it is difficult for them to get approval. This is where a DACA status helps them to buy a house.

DACA Mortgage Loans in Houston comes with a handful of benefits DACA recipients. But the myths that surround the loan program often prevent home buyers to opt for this loan. To make sure you don’t fall in the trap,

Here we have exposed the myths on DACA Mortgage Loans in Houston 

  • One can’t get a traditional loan as a DACA recipient

Well, this concept is completely wrong. DACA recipient homebuyers can’t opt for government-backed home loan programs, such as FHA home loans or USDA loans. As DACA does not conform lawful status, DACA recipient remains ineligible for this loan program. But as there is no such guideline for traditional loans, you can easily apply for these loans. But you have to fulfill the eligibility criteria like a 20% down payment, good credit score, etc. to get approval for a traditional home loan program.

  • It is impossible to get a DACA loan with low credit score

It is not impossible to get approval for a home loan program with a low credit score, but it is always better to come with a high credit score as possible. Like any other home loan program, DACA lenders too want to know about the credit score of the borrower before approving the loan. The credit requirements vary from a lender to another one. With low credit, you narrow down your possibility to apply to various lenders. Besides, with low credit, you may need to pay a high mortgage rate. To lower such a possibility, you should take steps to improve your credit score.

  • Homebuyers can’t use gift funds for buying a house

Let us debunk the myth. Gift funds can apply to all or part of a down payment or closing costs. The only people who can give you gift funds are spouse or partner, children, dependents, or children. In most of the cases, the person providing the needs to work with you or your mortgage consultants need to follow some steps or requirements. Follow the steps to use gift funds for buying a house.

  • Work history is not necessary to get the mortgage

No, you will need a work history for getting approval a home loan as a DACA recipient. And the amount of work history required is 2 years. Some homebuyers only have a couple of years of employment history because of their DACA status. However, there are several ways to get a mortgage even with a limited work history. If you are not sure whether you can qualify for a mortgage loan based on your work history, get in touch with a reputable mortgage lender, and resolve your query.

  • DACA recipients don’t need any documents for this loan  

It is completely wrong. During your home loan application as a DACA recipient, you will need to provide some additional information to your lender. To get the loan, you will need proof of your legal status to live and work in the U.S. and earning related documentation. The required documents include Social Security Number, Current Employment Authorization Document (EAD), previous expired EAD card, bank statements, and additional income documents.

As the myths are uncovered, you might not have any restrictions. Now, opt for a lender and apply for a home loan program as a DACA recipient.

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