Need advice on moving forward with FHA Loan
 

Hey guys,
I want to buy a house and I reached out to lenders and explained my situation and all of them said I could not get any loan because of my status.

Then I saw Platinum Home Mortgage and Corey Vandenberg and he pre-approved me for an FHA loan. The interest rate is high and mortgage insurance premiums are through the roof. I am wondering if I should accept this or keep looking...

Thanks for any advice.

Re: Need advice on moving forward with FHA Loan
 

I doubt you would get anyone that would give you a fair rate considering our very precarious status.

Then the question becomes how important buying a house is to you, and you won't get an answer for that on this forum.

Re: Need advice on moving forward with FHA Loan
 

Why even buy a house right now, is the market ideal right now?

Owning a house is expensive, I would wait it out until you can get legal status at least.

Or save money in the mean time to put down in the future. I would not buy a house unless you have 50k to 100k to put down depending on where you live.

Re: Need advice on moving forward with FHA Loan
 

Thank you.

Re: Need advice on moving forward with FHA Loan
 

Don't get discouraged if that is your dream. Just put it into perspective. Things will work out!

Re: Need advice on moving forward with FHA Loan
 

Find a loan with Caliber Home Loans, you need to explain you have an EAD that renews every 2 years. Nothing more, nothing less. No need to mention "DACA".

Re: Need advice on moving forward with FHA Loan
 

Consider everything before making your decision. Your location interest rates and todays housing market is very important as well, I would say if you live in a state where homes are very expensive like in CA think about it a little deeper. If you are in a state where homes are cheap like in Texas or similar go for it. At the end of the day, I believe we will be ok. I bought my house 2 years ago and it was the best decision Ive made.

When it comes to financing makes sure you only mention that you have a renewable work permit. Do not mention DACA at all. Im sure if you can find someone that will finance you at today's interest rates.

Good luck!!!

Re: Need advice on moving forward with FHA Loan
 

Thank you for all the advice and encouragement. I live in South Carolina, homes aren't stupid expensive. The home I am looking at is 119k.
I am 25 years old and didn't realize how expensive it is to buy a home. I am finding out that you pay a hell of a lot more on loan fees, insurance premiums, and taxes than on your principal.
I am continuing to shop around for a loan I am comfortable with and if not then I will just take this as a learning experience and keep saving money.

Anyway, I will let you all know what happens over the next several weeks in case my experience can help anyone.

Re: Need advice on moving forward with FHA Loan
 

Hi, I am from Texas and going through the process as well.

Let me start by saying do not hide you DACA status from the lender, they will find out when you have to provide your work permit and SSN, they will see category C33 on your EAD and immediately know what it means (if not the rep then for sure at underwriting). The last thing you want is to get to underwriting and for them to say no bc you hid that you were DACA.

Also, shop around and let them know your situation ahead of time so they don't just run your credit. I have been doing this and have found that most will tell you if they can work with DACA or not. If they can they will ask you a few questions before running your credit. Try to also give them your credit score and credit report (from Credit Karma or similar) they can estimate your debt to income ratio (DTI) and give you a high level estimate before running your credit.

Last but not least, research loan options conventional and FHA are the most common ones but through my research I found Home Ready loans which requires only 3% down but is very similar to conventional terms with FHA low down payment option.

here is the lenders I found:
https://www.wechooseamerica.com/
https://htlenders.com/
https://www.bncbank.com/

Re: Need advice on moving forward with FHA Loan
 

One more thing the interest rate I am getting for the property in Texas have range from 5-5.5%. But also consider working with the builder lender if you are building, if they can work with DACA which some do then you might get better deals