College Station Native American Home Loans

Native Americans or Alaska Natives looking to buy a home can choose a Section 184 mortgage to finance the purchase. 

Section 184 Indian Home Loan Guarantee Program is a unique home mortgage program for American Indian and Alaskan Native families, Alaska villages, or tribally designated housing entities. This home mortgage program aims to give Native Americans access to financing to own a home in the U.S.

There are specific rules around who is eligible for this particular loan program. But for qualified borrowers, there are unique benefits, too. 

Do you need assistance with Native American home loans in College Station? Our mortgage experts here at Capital Home Mortgage are here to guide you through the process.

HUD Section 184

Through Section 184, the Office of Loan Guarantee of the U.S. Department of Housing and Urban Development guarantees home mortgage loans from participating lenders to Native borrowers. Section 184 offers a 100% guarantee to encourage banks and lending institutions to provide mortgage loans to Native Americans.

Eligible Borrowers

The following are eligible Native borrowers for this program:

1. Members of federally recognized American Indians and Alaska Native tribes. Check this list of Federally recognized tribes.
2. Federally-recognized Indian tribes
3. Indian housing authorities
4. Tribally designated housing entities

Native Hawaiians are covered under Section 184A.

Eligible Areas

Section 184 lists approved counties by the State where Native Americans may reside. Eligible areas extend beyond tribal trust land. 

Benefits of Section 184

Section 184 entitles Native American borrowers to many benefits to make house ownership easy. The program only requires a 2.25% down payment for loans over $50,000 or 1.25% for loans under $50,000. The interest rate is also based on market rates, not the borrower’s credit score. 

There is an upfront loan guarantee fee of 1.5% at closing, but you can finance it into the loan. For loans with a 78% loan-to-value, there is a minimal 0.25% annual mortgage insurance premium. Section 184 also protects Native Americans from predatory lending, and all Section 184 loan fees are monitored and approved by the Office of Loan Guaranty.

Allowed Usages of Funds

As a qualified borrower, you can use your Section 184 loans for the following:

1. Purchasing an existing home in an eligible area.
2. Constructing a new home, including manufactured homes with permanent foundations.
3. Rehabilitating homes.
4. Purchasing and rehabilitating an existing home.
5. Home loan refinancing (rate and term, streamline, cash out).

The home purchase or construction must be for a single-family home. The home must also be for a primary residence, not a secondary residence or investment property. 

Apply for a Native American Home Loan Today

Here at Capital Home Mortgage, we’ve made it our mission to deliver an easy and efficient experience regarding Section 184 Home Loans in College Station. Our team has successfully closed these loans for Native Americans around the country. 

As direct mortgage lenders, we handle the entire application and finance all mortgages from our coffers. This way, we can extend additional savings to you by giving you competitive interest rates and low processing fees.

Contact us at (979) 393-0049 to speak with our loan officers about obtaining your College Station Native American mortgage.