Native American Home Loans Fairbanks Alaska

A home loan product for federally recognized tribal individuals, tribes, and housing companies with tribal designations is the Section 184 Indian Home Loan Guarantee program. American Indians, Alaska Natives, Tribes, Indian Housing Authorities, and Regional or Village Corporations established in accordance with the Alaska Native Claims Settlement Act are examples of eligible borrowers.

The acquisition of an existing home, renovations, new construction, and refinancing, including cash-out refinancing, can all be financed with a HUD Native American Home Loan. The entire state of Alaska allows Native American Home Loans.

Eligibility Requirements for HUD Section 184 Credit

To be eligible for the program, there is no minimum credit score requirement. The borrower must, however, consistently be creditworthy. Alternative forms of credit are acceptable but cannot replace conventional forms.

According to their borrower’s credit report, borrowers must establish a track record of fulfilling financial responsibilities. All liens, collections, and judgements shall be paid in full. All accounts must have made their past-due payments on schedule.

The down payment

The down payment will be 2.25 percent of the home’s appraised value or the purchase price, whichever is less. For loans under $50,000, a 1.25 percent down payment is required.

Payroll to Income Ratio

There must be a 41% debt-to-income ratio, but it may be greater if there are other compensating variables. This means that your monthly mortgage payment and all other debts, including credit card debt and other unsecured debt, cannot exceed 41% of your gross monthly income. As a result, you will have less money available to pay your mortgage if you have a lot of debt.

Property

The property being purchased must meet lending criteria. The lot needs to be subject to site control, and the lender will send an appraiser to confirm the property’s worth and condition.

Tribal Membership

The borrower must provide documentation proving their membership in an Indian tribe or business registered under the Alaska Native Claims Settlement Act that has received federal recognition. Who is a member and how membership is verified are decisions made by the tribe/corporation. Members typically receive a membership card from the tribe/corporation. The borrower must deliver a copy of their membership card in order to demonstrate eligibility.

Apply for a Section 184 home loan in Alaska.

Capital Home Mortgage might be able to help if you are a member of a Native American tribe and you think you are eligible for a Section 184 loan. To speak with a home loan specialist about Alaska Native American home loans, call (907) 531-5048.