Killeen Native American Home Loans

A Native American home loan helps American Indians and Alaskans access affordable home mortgage options. Since conventional loans can be burdensome for some Native Americans, HUD Section 184 loans provide unique features that make loan applications easier and accessible to many Native Americans. This loan type is formally called the Indian Home Loan Guarantee Program and is processed under the Office of Loan Guarantee of the U.S. Department of Housing and Urban Development.

Since this is a unique government program, not all lending institutions can give Native American loans. Only HUD-accredited institutions can offer this loan to Native American Applicants. Capital Home Mortgage is an accredited lending institution authorized to grant Section 184 loans to interested borrowers. Contact our Killeen mortgage experts to know more and start your application immediately.

Benefits of Native American Home Loans

The guarantee granted by Section 184 allows lending institutions to give 100% financing to Native American loans. That means lenders can accept low down payments from applicants. 

The down payment for Native American home loans can be as low as 1.25% if the loan is under $50,000 or 2.25% above $50,000. The loan-to-value would effectively be 97-99%, depending on the loan amount. In a conventional loan, the recommended down payment to skip mortgage insurance is 20%, while the lowest can be 3.25% if the borrower has a credit score of at least 580.

Closing costs for Native American loans are 1.5% at closing, but you refinance closing costs into the loan and pay during monthly amortizations. 

Overall, Native Americans need only to at least secure a 1.25% or 2.25% down payment. Mortgage insurance is also minimal for this type of loan. It is 0.25% per year for loan-to-value (LTV) 78% and above. A higher LTV means that your down payment is low. So if you want to save 0.25% of insurance premiums per year, put a larger down payment (at least 23%).

Qualifications Requirements of Native American Loans

The borrower must be a member of a federally recognized American Indian or Alaskan Native tribe. Federally-recognized Indian tribes or tribally designated housing entities and Indian Housing Authorities can also get Native American loans.

There is a list of approved counties where you can buy homes. Reach out to our mortgage experts to get a complete list of states and counties that need full or partial approval. Ensure the lender is approved for a Section 184 loan. We are a participating and approved lender for this program.

Get a Native American Loan Today

Sign up for a Native American loan in Killeen, Texas, today. At Capital Home Mortgage, we strive to give our clients an easy and convenient application process. Direct mortgage lending lets us put our clients first by processing all loan applications directly. Please speak to our Native American loan experts to know more. Call us at (254) 213-7343 for more information.