THE SECTION 184 LOAN PROGRAM
What is a Section 184 Native American Home Loan?
The Section 184 Loan is a home mortgage program backed by the U.S. Department of Housing and Urban Development (HUD). It is specifically designed to provide Native American families with access to affordable and safe housing opportunities. The program offers a range of loan options, including fixed-rate, adjustable-rate, and energy-efficient mortgages.
How does the Section 184 Loan program work?
What are the benefits of a Section 184 Loan?
The Section 184 Loan program offers several benefits to eligible borrowers. These include:
- Low down payment: Borrowers may be able to purchase a home with a down payment as low as 2.25% of the purchase price.
- Competitive interest rates: Because the program is backed by HUD, lenders can offer competitive interest rates to eligible borrowers.
- No private mortgage insurance (PMI): Unlike conventional loans, Section 184 Loans do not require borrowers to pay for PMI.
- Flexible credit requirements: While borrowers must still meet credit requirements, lenders may be more lenient in considering factors such as non-traditional credit history or a low credit score.
- Energy-efficient mortgages: Borrowers may be eligible for an energy-efficient mortgage that allows them to finance the cost of energy-efficient improvements into their loan.
What are the requirements for a Section 184 Loan?
To be eligible for a Section 184 Loan, you must meet the following requirements:
- You must be a member of a federally recognized Native American tribe or an Alaska Native Village.
- You must intend to use the property as your primary residence.
- The property must be located on tribal lands or in a designated Native American area.
- You must meet the lender’s requirements for income, credit history, and debt-to-income ratio.
How to apply for a Section 184 Loan?
To apply for a Section 184 Loan, you will need to find a participating lender that offers the program. You can find a list of approved lenders on the HUD website. Once you have selected a lender, you will need to provide documentation of your eligibility, including your tribal enrollment information and proof of income and assets.
Or, consider working with us! If you are weighing a Section 184 Tribal Loan to buy a home or refinance your current loan, speak with a Native American Home Loan (Scissortail Financial) mortgage specialist who can help you determine your eligibility, monthly payment savings, maximum loan amounts, and program advantages. Get started with our form, below.
Conclusion
The Section 184 Loan program is a valuable resource for Native American families looking to purchase, build, or renovate a home on tribal lands or in designated Native American areas. The program offers flexible loan options, competitive interest rates, and other benefits that make homeownership more accessible and affordable. If you are a member of a federally recognized Native American tribe or an Alaska Native Village, you should consider exploring the Section 184 Loan program as a potential financing option for your home.
Find out what tribal lending options you qualify for:
The Scissortail Financial Promise
Always Provide
- High level of professional & personal service
- Friendly experience
- Local Underwriting
- Frequent Communication
- Respect for our customer’s time
- Credit education for less than perfect credit borrowers
- Freedom to structure the loan so it meets the customer’s needs
- On-time closings with no surprises
- Confidentiality and treat all client information as private
- Custom-tailored solutions that support our customer’s financial goals!
Every loan officer at Scissortail Financial is certified by the U.S. Department of Housing and Urban Development (HUD) to consult borrowers like you about the Section 184 Native American Loan program. We are extremely knowledgeable problem solvers no matter what your specific situation is. We look forward to working with you and we will make it a priority to exceed your expectations!
