Midland Native American Loans

Homeownership is a cornerstone of the American dream and is widely seen as a sound financial investment. However, Native Americans have not always had access to this opportunity, as mortgage lenders seldom provide loans to people living on reservations or federal trust lands. 

But thanks to the Section 184 Indian Home Loan Guarantee Program, American Indians and Alaska Natives can now obtain mortgage loans for homes on or off Native lands. 

What is the HUD Section 184 Loan?

The Section 184 Native American Home Loan Guarantee Program was established in 1992. The program aims to make homeownership more accessible to Native Americans by offering loan guarantees to lenders looking to provide home loans to Native Americans. The guarantee protects the interests of lenders in case of foreclosure, reducing their risk.

Who is Eligible For Native American Home Loan?

Eligibility for the Section 184 Loan Program is contingent upon possessing a valid tribal membership or citizenship card issued by a federally recognized tribe. This loan option is NOT reserved for first-time buyers, so all Native American members of a federally recognized tribe are eligible.

Why Choose HUD Section 184 Loan?

The Section 184 Loan Program is the best option for American Indians and Alaska Natives seeking to buy a home in Midland, Texas, or anywhere else in the state. Here are several compelling reasons why:

     1. Specifically created for Native Americans

HUD-184 was explicitly established to offer home and housing renovation loans to Native Americans and Alaskan Native individuals and families. 

Although the program has a few basic requirements that applicants must meet to qualify for a loan, it offers generous allowances and is easier to obtain than a conventional loan.

     2. Easier qualification process

One thing that makes HUD-184 loans unique is that each application is reviewed and manually underwritten by a home loan specialist. The program also makes exceptions for borrowers who do not meet the standard requirements set forth by banks and mortgage lenders due to a lack of credit or a history of credit problems.

     3. Lower down payment

A down payment of between 5% and 20% is typically required for a conventional mortgage, while the down payment requirement for an FHA loan is 3.5%. The HUD-184 requires an even smaller down payment than the previous two. The minimum down payment for Section 184 loans over $50,000 is 2.25%, while loans under $50,000 require only 1.25%. 

     4. No income limits or credit score requirements

There are no credit requirements for a Section 184 loan, which is a huge plus. You can still qualify for this loan even if you have a low or nonexistent credit history because each application is evaluated on its merits. Moreover, there is no need to worry about a minimum or maximum income requirement.

     5. Great mortgage rates

Market rates, not an applicant’s credit score, determine the interest rate for HUD-184 loans, so borrowers can rest assured that they will always receive a competitive rate. This program’s funding fees and mortgage insurance premiums are significantly lower than those of FHA-backed loans.

     6. Flexible down payment and versatile financing options

The down payment for a Section 184 loan can come from various sources. You can utilize personal savings, gifts from relatives or friends, or tribal grants or aid. Furthermore, the Section 184 Native American Home Loan Program can finance home purchases, new construction, renovations or rehabilitations, or refinancing existing mortgages. 

Start Your Homeownership Journey With Capital Home Mortgage

The HUD Section 184 program has many great features that set it apart from other loan programs. If you qualify for a Section 184 loan, there’s no reason not to take advantage of it. For HUD-184-eligible Midland homebuyers, the process starts by speaking with one of our home loan officers at Capital Home Mortgage.

We are a direct mortgage lender, experienced in handling HUD-184 loans and other conventional and government-guaranteed mortgages. With us, you can rest assured that you’ll receive the information and guidance to navigate the mortgage process successfully.

Need more information about the HUD Section 184 Native American Home Loan? Contact us at (432) 218-4828 now!