DACA stands for “Deferred Action for Childhood Arrivals.” DACA is a U.S. immigration policy that was introduced in 2012 by the Obama administration. It provides temporary legal protection from deportation and work authorization to certain undocumented individuals who were brought to the United States as children, often referred to as “Dreamers.” In this case we can do the loan with the same requirement as conventional loan. Here are some key features and considerations for DACA loans:
- Contract Duration: Typically 20 to 25 days from offer acceptance to closing, offering a quick turnaround.
- Credit Score Requirements: Conventional loans generally have stricter credit score requirements compared to government-backed loans. Borrowers with good to excellent credit scores are more likely to qualify for favorable terms and lower interest rates.
- Low Down Payment: A minimum down payment of 3% is required for first-time home buyers and 5% is required for when not a first-time home buyer, and 10% for second homes and investment properties.
- Fixed or Adjustable Rates: Conventional loans come in various forms, including fixed-rate mortgages (with a constant interest rate for the life of the loan) and adjustable-rate mortgages (with interest rates that can change over time).
- Term Lengths: Conventional loans typically offer a range of term lengths, such as 15-year and 30-year loans. Shorter-term loans often have higher monthly payments but lower interest rates, while longer-term loans may have lower monthly payments but higher overall interest costs.
- Compensation: Both lender and Borrower paid compensation