Native American Home Loans In Spokane

What is Section 184 Native American Home Loan?

The Section 184 Indian Home Loan Guarantee Program is a mortgage loan product explicitly designed for American Indian and Alaska Native families, tribes, and tribally designated housing entities. The program was established by Congress in 1992 to increase access to capital and facilitate homeownership in Native American communities. On or off native lands, Section 184 loans may be used for new construction, rehabilitation, the purchase of an existing property, or refinancing. 

Key Features of HUD Section 184 Loan?

The key features of the Section 184 Home Loan program include the following:

• Eligibility

The program is accessible to federally recognized American Indians or Alaska Natives, federally recognized Indian tribes, tribally designated housing entities, and Indian Housing Authorities.

• Types of Homes

The Section 184 program is only available to single-family dwellings (with 1-4 units).

• Loan Characteristics

The loan must be a 30-year fixed-rate loan or less. The maximum loan amount is 150% of the area’s Federal Housing Administration (FHA) lending limit. Prepayment penalties do not exist.

• Usage

Section 184 loans can be used for new construction, rehabilitation, home purchase, or refinancing. These are suitable for use both on and off native lands.

• Guarantee

In the event of foreclosure, the Office of Loan Guarantee assures the lender that its investment will be repaid in full.

Additional loan programs are also available, such as the Native American Direct Loan (NADL) program for Veterans. It enables Native American or non-Native American Veterans married to Native Americans to obtain a loan to purchase, construct, or modify a home on federal trust land.

What are the Advantages of Section 184 Home Loan?

The Section 184 Indian Home Loan Guarantee Program, created specifically for American Indian and Alaska Native families, tribes, and tribally designated housing entities, offers several benefits that facilitate homeownership and expand access to capital in Native American communities.

The primary advantages of Section 184 Home Loans include the following:

• Low Down Payment

The program requires a 2.25 percent down payment for loans over $50,000 but only a 1.25 percent down payment for loans under $50,000. This is typically less than many other loan types, including FHA 203(b) loans requiring a minimum 3.5% down payment.

• No Mortgage Insurance

Section 184 loans, unlike FHA loans, do not require monthly mortgage insurance, resulting in substantial savings over the loan term.

• Lower Interest Rates

Regardless of the borrower’s credit score, the interest rates on Section 184 loans will never exceed the market rate.

• Flexible Credit Score Requirements

Unlike FHA and other loan programs, section 184 loans do not have minimum credit score requirements.

• Loan Term and Interest Rate

Loan terms are limited to 30 years, and interest rates do not exceed the market interest rate.

• Variety of Uses

The loans may be used for new construction, rehabilitation, purchasing an existing property, or refinancing on and off native lands.

• Broad Availability

Except for New York, these loans are available to all federally recognized tribe members, regardless of their state of residence.

• Tribal Land Protection

The restrictions governing a Section 184 Home Loan ensure that the tribe’s land is preserved and that the tribe can repurchase the foreclosed property.

Apply for a Native American Home Loan Guarantee Program

Homebuyers in Spokane should consider Capital Home Mortgage for a Section 184 mortgage due to several significant advantages. First, Capital Home Mortgage facilitates the Section 184 Indian Home Loan Guarantee Program, designed to increase access to capital and homeownership opportunities for American Indian and Alaska Native families, tribes, and housing entities. Second, Section 184 loans offer options for low down payments and flexible underwriting, making it more straightforward for prospective homebuyers to qualify for financing. Capital Home Mortgage is a HUD-approved, participating lender for Section 184 financing, ensuring a streamlined application and approval process. Spokane homebuyers who utilize Capital Home Mortgage for a Section 184 mortgage benefit from specialized expertise, increased access to capital, and a streamlined process tailored to their specific needs and eligibility requirements.

Call our Native American Team at (800) 536-8171 for more information about HUD Section 184 loans in Spokane.