If you’re a Native American and would like to purchase a home, then you should know that there are lending programs out there specifically for you. If you’re a member of one of the 500 recognized Indian tribes in the United States, then you may be eligible for the Section 184 Indian Home Loan Guarantee Program. Not sure what the Section 184 program is and how it can help you purchase a new home? Here are the key details you need to know.
How Native Americans Can Receive Assistance to Purchase a Home
As a Native American or Alaskan Native tribal member, you might be eligible to receive a home loan that is backed by the Office of Loan Guarantee, HUD. HUD has an Office of Native American Programs, which focuses on making it more affordable for Native Americans to purchase residential property both on and off native lands. HUD works with certain lenders that offer Native Americans home financing options at an affordable rate while reducing out of pocket prices for closing costs, mortgage insurance, and many other fees.
What are the Benefits of Using a Section 184 Loan?
If you’re eligible for a Section 184 loan, you should absolutely get one instead of going through a traditional mortgage company. This is because of the provision that allows for a low-down payment. For example, securing a loan for less than $50,000 can be done by putting down only 1.25%. And if you’re receiving a loan for over $50,000, your down payment is still a very low 2.25%. That’s one of the best rates available for US citizens, and can save you thousands of dollars right from the start. The second benefit is that you get to pay low-interest rates with a Section 184 loan. Instead of having an interest rate that is calculated using your credit score, you instead receive standard market rates, which can also save you additional money every month during the term of your loan.
What Can You Use Section 184 Loans For?
Section 184 loans can be used to purchase primary residence single family homes between one to four units. You can purchase an existing home, construct a new home, rehabilitate a home, purchase and rehabilitate a home, or refinance your home with a Section 184 loan. One important thing to note here is that you can’t use the funds for investment properties or second homes, but you can use it on residential duplexes, triplexes, and quadruplexes, which can bring in consistent passive income each month.
Interested in Learning More About Section 184?
If you want to learn more about eligibility requirements for a Section 184 loan then get in contact with us! We can help you prepare for the home buying process, explain areas that you can purchase property, and get you in touch with an approved Section 184 lender. Are you ready to become a homeowner? Give us a call or send an email, and we can help you start the process today!