Waco Native American Home Loans

The Section 184 Loan Program was established by the Department of Housing and Urban Development (HUD) to make homeownership more accessible to Native Americans. This government-backed home loan provides mortgages with more flexible terms to Native American tribal members across the country.

Capital Home Mortgage is a full-service mortgage company in Waco, TX, specializing in Native American mortgages. We have assisted numerous Native Americans in achieving homeownership, and we can do the same for you too!

Who is Eligible for the HUD-184 Loan?

The Section 184 Loan Program is available to individuals who are members of federally recognized tribes. All Native Americans, first-time and repeat homebuyers, are eligible for the loan, provided they have a Tribal Membership or Citizen Card from a federally recognized tribe.

A significant advantage of this loan program is that only one of the applicants has to be a tribal member. You may be eligible for a HUD-184 loan even if your spouse is not a member of any tribe and is your household’s sole/primary income provider.

HUD-184 Loan Qualification Requirements

Are you interested in the HUD-184 mortgage? Here are some essential details about HUD Section 184 eligibility requirements before applying for a loan. 

• Credit Score

The HUD-184 loan doesn’t have a minimum credit score requirement, which makes it a good choice for qualified individuals with poor credit. Moreover, borrowers with bad credit don’t have to pay higher interest rates like most mortgage programs.

• Debt-to-Income Ratio

For the HUD-184 loan, lenders typically use a debt-to-income ratio of 41% to figure out how much a borrower can afford to borrow.

• Borrower Income Limit

One of the best features of this home loan is that it doesn’t have any borrower income limits.

• Financing Options

The HUD-184 loan has some of the market’s lowest down payment and closing cost options. A 2.25 percent down payment is required for loans of $50,000 or more, while loans under $50,000 require a 1.25% down payment. Additionally, a one-time guarantee fee of 1.5% is paid to the government. This cash may come from savings, investments, or family gifts. Tribal aid is also accepted.

• First-time and Repeat Buyers

Unlike other low-down-payment mortgage programs, this one accepts applications from both first-time and seasoned home buyers. Although eligible borrowers may participate in the program more than once, they are only permitted one Section 184 Loan at a time.

• Manual Underwriting

Instead of submitting documents to a computer that generates mortgage approvals or denials based solely on numbers, HUD-184 loans undergo a thorough and detailed manual review. This could increase your chances of being approved for a mortgage that better meets your needs.

Apply for a Native American Home Loan

HUD-184 loans offer greater flexibility and more favorable terms than other loan types, making them an excellent option for Native American homebuyers. Obtaining a Section 184 loan, however, can be challenging.

If you are a member of a Native tribe and believe you may be eligible for a Section 184 loan, the mortgage experts at Capital Home Mortgage can help! We can answer any questions regarding the Section 184 mortgage and, should you decide to apply, make the entire home loan process more convenient!