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Austin Native American Home Loans
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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!
Why Austin is Choosing Capital Home Mortgage...
Close On Time with True Approval
Control of the Loan from the Application to Funding.
Great Austin Rates / Low Fees
Direct Mortgage Lender Providing Competitive Rates and Low Fees.
Austin Customer Service
7 Day a Week Support from Application to Final Mortgage Payment.
Benefits of Austin Native American Home Loans
How to Use a Native American Loan
- Purchase an Existing Home.
- Construction of a New Home (Site Built or Manufactured Homes on Permanent Foundations)
- Rehabilitate an Existing Home.
- Purchase / Rehabilitation Combination
- Refinance Home (Rate and Term, Streamline, Cashout)
- Primary Residences Only
Advantages of a Native American Loan
- Low Down Payment.. 2.25% on loans over $50,000 and 1.25% on loans under $50,000.
- Approval not based solely on the applicants credit scores.
Manual Underwriting: The program uses a hands on approach to underwriting.
- Section 184 Upfront Loan Guarantee Fee and Annual Mortgage Insurance
- A one time 1.5% upfront fee paid at closing and can be financed into the loan should you choose.
- Loans with a loan to value of 78% or greater will have an annual .25% mortgage insurance premium.
- Protection from predatory lending: Section 184 loans are not subject to adjustable rate mortgages.