Native American Home Loans In Tacoma

What is the HUD Section 184?

The Section 184 Loan Program is intended to provide Native American and Alaska Native tribal members with access to mortgage financing. Office of Loan Guarantee, Office of Native American Programs, HUD, guarantees 100% of Section 184 housing loans. This guarantee encourages national and local financial institutions to offer mortgage loans to Native Americans. The Office of Loan Guarantee collaborates with a nationwide network of lenders to expand access to property financing for Native Americans and enhance the value of their investments.

The Section 184 Indian Home Loan Guarantee Program facilitates the Native American Home Loan Program in Tacoma, Washington. This program encourages American Indian and Alaska Native families, tribes, and housing bodies to become homeowners by offering low down payments and flexible underwriting. 

Native American home financing choices also include government-backed and mainstream programs that have raised homeownership rates. Section 184, for example, is a popular alternative due to its low down payment and unique features. There are also conforming, VA, and USDA loans available.

Eligibility Requirements for HUD 184 Loans

Individuals must have Native American/American Indian ancestry, purchase a primary residence, and meet the loan criteria to be eligible for the program. Applicants must use HUD-approved Section 184 lenders to apply.

• Tribal Membership

Borrowers who want to use the Section 184 Indian Home Loan Guarantee Program must be a member of a Federally Recognized Tribe or an Alaska Native.

• Credit

There is no minimum credit score needed to participate in the program. However, the borrower must be creditworthy in all instances. Alternative credit is permitted but not as a replacement for conventional credit.

• Income

The program has no income limits. However, income eligibility is determined by the borrower’s debt-to-income ratio.

• Debt-to-Income (DTI) Ratio

Total monthly obligations, including the fees of the proposed home loan, are generally limited to 41% of gross monthly income under the Section 184 program.

• Primary Residence

Guarantee funds are reserved exclusively for primary residences.

• Down Payment

A low down payment of 2.25% is required based on the lesser of the appraised value or the cost of acquiring the home. For loans under $50,000, a 1.25% down payment is required.

• Property Standards

Only single-family dwellings with one to four units are permitted. Homes must be of standard quality and adhere to all applicable building and safety requirements. Furthermore, homes must be modest in size and style.

• Loan Amount

Under the Section 184 Indian Home Loan Guarantee Program, no loan may exceed 150 percent of the area’s maximum FHA mortgage limit. 

Advantages of HUD 184 Loans

There are numerous benefits to getting HUD 184 loans. Among the advantages are:

• Low Down Payment

HUD 184 loan down payments are generally 2.25 percent on loans above $50,000 and only 1.25 percent on loans under $50,000.

• No Minimum Credit Score

The HUD 184 program is one of the few that only requires applicants to have a minimum credit score.

• Easy Qualifying and Financing

A HUD 184 loan is a straightforward and painless financing alternative for tribal members. This program was intended exclusively for federally recognized tribe members, who may be confident it will benefit them.

• Manual Underwriting

The program takes a hands-on approach to underwriting rather than employing automated decision-making technologies. This means we can better assess loans on an individual basis.

• Limited Fees

HUD 184 loans are reasonable and inexpensive, and the fees are tightly managed.

Apply for Tacoma Native American Home Loan

Tacoma home buyers can benefit significantly from using Capital Home Mortgage for a HUD Section 184 loan. As a HUD-approved lender, we have access to the Section 184 Indian Home Loan Guarantee Program, a specialty product for American Indian and Alaska Native families, tribes, and housing entities. Our comprehensive lending program portfolio demonstrates our ability to meet the demands of a wide range of homebuyers, including those who qualify for Section 184 loans. Capital Home Mortgage is an appealing option for Tacoma home buyers looking for HUD Section 184 loans.

Call (803) 600-0088 to speak with our Tacoma Native American Home Loan Team.