Odessa Native American Loans

The United States Department of Housing and Urban Development (HUD) provides various mortgage assistance programs. These programs are intended to assist people experiencing various difficulties when purchasing a home. Section 184 is a HUD program designed to provide special mortgage loan assistance to Native American/American Indian and Alaskan tribe members. This program is formally known as the Indian Home Loan Guarantee program but is more commonly called “Section 184 Loans.”

Why Was The Section 184 Loan Created?

The Housing and Community Development Act of 1992 established Section 184 to address the lack of mortgages for Native Americans. American Indians and members of Alaskan tribes face unique challenges that make homeownership harder. For example, much of the land on which Native Americans live is held in trust — either a tribal or an allotted trust. Lands held in trust for a tribe cannot be mortgaged under the law.

Even with individual land, BIA and HUD must approve a mortgage loan application on that land. For Native Americans hoping to buy a home, these obstacles can make the process long and complicated.

Section 184 loans are mortgages with preferential terms reserved for members of specific tribes across the country. These tribes include American Indian and Alaska Native families and members of certain Alaska Villages, Tribes, or Tribally Designated Housing Entities. Through this initiative, the federal government intends to improve the economic security of Native American communities and the value of Native American assets.

Who Is Eligible for a Section 184 Loan?

A Section 184 mortgage loan can only be obtained by American Indians and Alaska Natives who are enrolled members of federally recognized tribes. The Section 184 loan application process includes verification of tribal membership, which is determined solely by individual tribal governments and is typically confirmed through the presentation of a membership card or letter. 

The Benefits of Section 184 Loans

While numerous loan options are available to homebuyers, Section 184 loans provide plenty of excellent advantages. Remember that you can use these loans for any residential real estate purpose, including buying an existing property, building a new one, repairing an existing one, buying a property and then fixing it up, or refinancing it. Other benefits of Section 184 loans are as follows:

• Low upfront and monthly mortgage insurance premiums
• No income restrictions for applicants
• No minimum credit score is required to apply
• No prepayment penalties
• Low down payment: 2.25% on loans of $50,000 or more and only 1.25% on loans of less than $50,000.
• Low-interest rates
• The interest rate is based on market rates, not the applicant’s credit score.
• Manual underwriting and approval
• Borrow for up to 30 years at a fixed rate

No Fuss Section 184 Home Loan Application

Capital Home Mortgage is here to assist potential homebuyers in obtaining a Section 184 loan in Odessa and throughout Texas. We have helped many native Americans achieve their dream of becoming a homeowner, and you can be next!

Whether you’re a first-time homebuyer or someone who has purchased multiple homes, you are welcome to get pre-qualified for 184 loans. However, the maximum loan amount differs for every county and property type. 

Call us at (432) 218-4828 if you are ready to apply for a HUD Section 184 loan.