Native American Home Loans In Seattle

The Section 184 Indian Home Loan Guarantee Program, instituted by Congress in 1992, primarily facilitates the Native American home loan program in Seattle, Washington. This program is intended to assist American Indian and Alaska Native families, Alaska villages, tribes, and tribally designated housing entities in achieving homeownership and gaining greater access to capital.

In Seattle, the Northwest Office of Native American Programs (NWONAP) ensures that Native American families can access safe, decent, and affordable housing while nurturing economic opportunities for tribes and Indian housing residents.

The program offers options for low down payments and flexible underwriting to make homeownership more accessible for Native Americans. Section 184 loans can be used for various purposes, including new construction, rehabilitation, purchasing an existing property, and refinancing on and off native lands. The loans are backed by HUD’s Office of Native American Programs’ Office of Loan Guarantee, assuring lenders that their investment will be repaid in full in the event of foreclosure.

Section 184 Eligibility Requirements

To be eligible for a Section 184 loan, you must be a nationally recognized tribe member or a Native Hawaiian. If you qualify, you should be able to apply for a Section 184 loan in Seattle, Washington, and are buying a home that will be your primary residence.

The eligibility requirements for a Section 184 loan in Seattle include the following:

• Native American / American Indian Heritage

The applicant must be a Native American/American Indian who intends to purchase a principal dwelling. An Indian tribe, the federal government, or any state should additionally acknowledge the individual or their family member(s) as Indian or Alaska Native.

• Location

Section 184 loans may be utilized on and off native lands. Washington, including Seattle, is among the locations where these loans are permitted.

• Loan Terms

The loan term must be at most 30 years, and the financing must be at most the market interest rate. The maximum loan amount is 150% of the area’s Federal Housing Administration (FHA) lending limit. There are also no prepayment penalties with this service.

• Application Process

If leasing tribal land, the borrower should engage with the tribe and the Bureau of Indian Affairs to apply for a Section 184 loan. The lender next reviews the loan documents and submits them to HUD’s Office of Loan Guarantee for approval.

Advantages of HUD Section 184 Loan 

The HUD Section 184 loans offer several benefits for borrowers. They include the following:

• Low Down Payment

The down payment required is lower than for most major loan types. Borrowers must put down 2.25% on loans exceeding $50,000 and 1.25% on loans under $50,000.

• Income

You must have sufficient income to be eligible for the Section 184 Loan. The lender will compare your pre-tax income to your future total payments, including your mortgage payment. Your debt-to-income (DTI) ratio, the sum of all payments, must be at most 43% of your gross income. 

• Flexible Underwriting

It features flexible underwriting guidelines, making lending more accessible to a broader range of borrowers.

• Various Usage

These loans can be utilized for various purposes, including new construction, renovation, property purchase, and refinance1. They can be used both on and off indigenous lands.

• Loan Guarantee

The Section 184 home mortgage loans issued to Native borrowers are guaranteed by the Office of Loan Guarantee, which is part of HUD’s Office of Native American Programs. This guarantee ensures that the lender’s investment will be fully returned in the case of foreclosure.

• Fixed Rate Financing

The loans provide fixed-rate financing that cannot exceed the market interest rate.

• Loan Terms

The loan term is 30 years maximum.

• No Prepayment Penalties

There are no prepayment penalties, so borrowers can pay off their loans sooner without incurring any penalties.

• Higher Loan Limits

The maximum loan amount is 150% of the area’s Federal Housing Administration (FHA) lending limit. For 2023, the FHA loan ceiling for a single-family home in King County, Washington, is $977,500. Borrowers in Seattle can borrow up to $1,466.250 for a single-family home.

Apply for a Seattle Section 184 Loan with Capital Home Mortgage

Capital Home Mortgage provides numerous advantages to Seattle borrowers pursuing a Section 184 loan. The Section 184 Indian Home Loan Guarantee Program is intended to increase access to capital in Native American communities and facilitate homeownership. 

Capital Home Mortgage’s participation in this program enables applicants in Seattle to take advantage of reduced down payment requirements. Borrowers in Seattle who choose Capital Home Mortgage can experience these benefits of the Section 184 loan in addition to the company’s financial expertise, customer service, and commitment to serving Native communities. The ultimate benefit is a safe, efficient, and streamlined path to homeownership for Seattle’s Native American families.

Call our Seattle Native American Team at (800) 536-8171 for your HUD Section 184 loan.