Native American Home Loans In Austin

The Department of Housing and Urban Development’s Section 184 Indian Home Loan Guarantee program is a government-supported loan program. Specifically, it was developed to give Native American tribal members access to flexible mortgage financing.

Any individual from a federally recognized tribe is eligible to participate in the Section 184 Loan Program. All Native Americans, first-time and repeat homebuyers, qualify for the loan as long as they have a Tribal Membership or Citizen Card from a tribe that has received formal government recognition.

How HUD Section 184 Works

According to data, the percentage of Native Americans who are homeowners in the US is just approximately 50%. This information is unexpected, given that Native Americans have a specific financing program established by the Department of Housing and Urban Development (HUD) to make homeownership more straightforward and accessible.

The Section 184 home mortgage loans provided to Native borrowers are guaranteed by the Office of Loan Guarantee, a division of HUD’s Office of Native American Programs. The loan guarantee ensures the lender that, in the case of a foreclosure, its investment will be fully reimbursed.

HUD-184 Qualification Requirements

The HUD-184 home loan program has no minimum credit score requirement. It is the perfect option for qualified but credit-challenged customers. Borrowers with marginal credit are not subject to increased interest rates, unlike most mortgage programs.

When requesting a Section 184 loan from a participating lender and leasing tribal land, the borrower coordinates with the tribe and the Bureau of Indian Affairs. The lender reviews the required loan papers and sends the loan to HUD’s Office of Loan Guarantee for approval.

The HUD Section 184 has different loan limits as dictated by each county. Here’s the latest loan limit data. The loan is available to American Indians and Alaska Natives members of a federally recognized tribe. The complete list of federally recognized Indian tribes as of this year can be found here.

The HUD-184 loan features some of the market’s lowest down payment requirements. A 2.25 percent down payment is required for loans of $50,000 or more, while a 1.25 percent down payment is required for loans of less than $50,000. A one-time 1.5 percent guarantee charge is also paid to the government. This money could come from your savings, investments, or family members’ presents. Tribal help is also accepted.

Apply For Native American Indian Home Loan

If you are a member of a Native tribe and believe you may be eligible for a Section 184 loan, Capital Home Mortgage may assist you!

We offer free consultations, answer any questions you may have about Section 184 mortgages, and walk you through all mortgage options. Call us at 800-536-8171 to talk with a Native American team member!