Brownsville Native American Home Loans

Statistics show that only about 50% of Native Americans living in the United States are homeowners. Given that the Department of Housing and Urban Development (HUD) has a unique loan program that makes homeownership more manageable and accessible to Native Americans, this data is quite surprising.

What is the HUD-184 Loan?

The Department of Housing and Urban Development runs a government-backed loan program called the HUD-184 Loan. This program was established to help Native American tribal members secure mortgage loans on more favorable terms.

Who is Eligible for HUD-184 Loan?

Anyone part of a federally recognized tribe can apply for a home loan through the Section 184 Loan Program. Whether you’re a first-time buyer or not, as long as you have a Tribal Membership or Citizen Card from a federally recognized tribe, you are eligible for the Loan. Moreover, only one of the applicants needs to be a Tribal member. You can still qualify for the HUD-184 Loan even if your spouse is the primary breadwinner and not a tribal member.

HUD 184 Loan: What You Need to Know

Capital Home Mortgage is a full-service Brownsville mortgage lender that specializes in helping Native Americans secure mortgages. We have assisted numerous Native Americans in purchasing homes, and we can also assist you.

Are you thinking about applying for a HUD-184 loan? Here are some crucial facts you need to know about the Loan before you use it.

• Credit Score: 

The HUD-184 Loan doesn’t have a minimum credit score requirement, making it a good choice for qualified people but those with bad credit. In contrast to most mortgage programs, borrowers with bad credit are not required to pay higher interest rates.

• Debt-to-Income Ratio: 

Lenders use a debt-to-income ratio of 41% to determine the maximum loan amount borrowers can afford.

• Income Limit for Borrowers: 

The HUD-184 Loan has no income limits for borrowers.

• Downpayment and Closing Costs: 

The down payment and closing costs on a HUD-184 loan are among the market’s lowest. A 2.25 percent down payment is required for loans over $500,000, while borrowers financing an amount below $500,000 need only make a 1.25 percent down payment. There is, however, a 1.5% one-time guarantee fee that goes to the government. These funds may come from your savings, investments, or family gifts. Tribal assistance is also accepted.

• First-time and Repeat Homebuyers: 

Unlike other low-down-payment mortgage programs, this one is available to first-time and repeat buyers. Borrowers who qualify may participate in the program multiple times but are only eligible for one Section 184 Loan at a time.

• Type of Mortgage: 

Eligible Borrowers may use the HUD-184 Loan to purchase, construct, or renovate a home. Many homeowners also refinance their existing HUD-184 loans to get better terms.

• Underwriting Process: 

The underwriting process for HUD-184 loans is more involved. The underwriter manually reviews your application rather than simply uploading the documents into a computer and receiving an automated yes/no answer. This may increase your odds of getting a mortgage and help you find one that works for your situation.

Due to its superior flexibility and favorable terms, there is no better loan option for Native American homebuyers than a HUD-184 loan. The thing is, a Section 184 loan can be hard to secure. 

As long as you are a qualifying Native American tribe member, the mortgage professionals at Capital Home Mortgage can assist you in applying for a Section 184 loan. We’d be happy to answer all your questions regarding the Section 184 mortgage and any other loan options that may interest you. 

Apply for a Native American Home Loan

Our team has a proven track record of helping the Austin Native American Community achieve their dreams of home ownership. We accomplish this by successfully working with the HUD Office of Native American Programs and the Bureau of Indian Affairs to lend in Indian Country. With decades of combined mortgage experience, we are here to assist you with your home mortgage needs. It is an honor to help make your homeownership dream a reality, and we appreciate your trust in our team. Call our Native American Team at (800) 536-8171 now.