Amarillo Native American Home Loans

The housing market in Amarillo is not just for the people who live there. If you’re a Native American looking to buy, rehabilitate or build your dream home, there are unique options to help make it happen. The U.S. Department of Housing and Urban Development (HUD) offers a unique program to help Native Americans achieve homeownership called the HUD Section 184 Native American home loan guarantee program. This mortgage is designed specifically for Native American tribes, providing assistance and promoting homeownership if you meet eligibility requirements.

Most lenders don’t understand the unique home loan needs of Native Americans, and these Native American home loans are challenging to obtain in the first place. 

At Capital Home Mortgage, we can help you find one, being a participating lender for Native American home loans in Amarillo. We’ve covered all the legal jargon so that nothing stands between your dream of owning a house and reality.

Benefits of Native American Home Loans

The way to get a loan approved is never an easy feat, but it just got easier for Native Americans with Section 184. This law provides up to 100% guarantee from the federal government and encourages banks or lending institutions to accept these loans. Let’s explore the other benefits that come with this opportunity:

• Low down payment requirements: You may only pay as low as 2.25% for your loans that exceed $50,000 or pay 1.25% for loans below $50,000.
• Market-based interest rate: You can use this mortgage to finance the construction of your home or buy an existing one, no matter the cost, since you are not required to have a high credit score.
• With an upfront guarantee fee of 1.5% at closing: This fee is not a disadvantage since you are not obliged to pay using your own money, having it financed into the loan.
• Minimal mortgage insurance: While you are required to pay for mortgage insurance, as long as your loan-to-value is at least 78% or above, you only pay a 0.25% annual insurance premium.

Qualification Requirements of Native American Loans 

The 184 Native American home loan program is available for a member of federally recognized Alaskan Native tribes or American Indians. You can also be eligible for this loan if you are:

• A federally-recognized Indian tribe
• A tribally designated housing entity
• A part of the Indian Housing Authorities

Meanwhile, the loans for Native Hawaiians are also covered by Section 184A. And besides the qualification requirements of the borrowers, the Native American Loans must be acquired in an eligible area that you can check in Section 184’s list of approved counties. 

While you can’t get a loan in some states as Natives, that doesn’t mean you’re left high and dry. There are eligible programs for which your approval will still be partial or complete depending on the lender’s requirements.

Get a Section 184 Home Loan in Amarillo

The process of acquiring a Section 184 home loan is not that different from other types of mortgages. But because there aren’t a lot of lenders who offer this type of mortgage, it can be challenging to secure this type of financing. 

At Capital Home Mortgage, we specialize in mortgages for Native Americans in Amarillo. You deserve a hassle-free home-buying experience. Call (800) 536-8171 today and let our Amarillo Native American loan experts help you get started.