In the past, private lenders often had issues legally foreclosing on a home located on Native American land. With the inability to enforce payments on loans, many lenders would not offer mortgages to borrowers purchasing a home on Native American land. As a means to address a lack of mortgage availability and to increase capital in Native American Communities, Congress established the Section 184 Indian Home Loan Guarantee Program in 1992. The Office of Loan Guarantee within HUD’s Office of Native American Programs guarantees home mortgages made under the Section 184 home loan program. By guaranteeing these loans, lenders are protected in the event of buyer default or foreclosure. 1st Capital Mortgage, LLC offers great rates and low down payment options on Tulsa 184 loans to Native Americans throughout Oklahoma.
Section 184 home loans are available in 37 states to American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In order to apply for a Tulsa 184 loan, at least one applicant must be enrolled in a Federally Recognized Tribe. If eligible, a borrower can use a Section 184 loan for a number or purposes including:
- Purchasing an Existing Home
- Constructing a New Home
- Refinancing a Home
- Rehabilitating a Home
- Purchase and Rehabilitate a Home
These loans are available only for single family homes that are to be used as the borrower’s primary residence. A Section 184 loan cannot be used for second homes or for investment properties. Tulsa 184 Loans amounts are limited by county.
Tulsa 184 Loan Limits
Advantages of Tulsa 184 Home Loans
Those who are eligible to apply for a Section 184 home loan will find that there are many advantages to this loan program.
- Low Down Payment – 1.25% on loans under $50,000. 2.25% on loans over $50,000.
- No Minimum Credit Score – While credit is important, there is no minimum credit score required. Underwriting is flexible and based on a number of different factors that can include credit history, income, open collection accounts, late payments, judgments and more.
- Low Interest Rates – Interest rates are based on current market rates. Adjustable rate mortgages are not permitted for Section 184 loans. Only fixed rate mortgages are available to protect borrowers.
- Lenders Fees and Costs Are Regulated – As an added layer of protection for borrowers, fees that lenders can charge are limited and monitored under the Section 184 program.
All loans are subject to the Section 184 Upfront Loan Guarantee Fee which is a one-time up-front fee of 1.5% which can be paid at closing or financed into the loan itself. An annual mortgage insurance premium of 1.5% will be applied to loans with a loan-to-value ratio of 78% or greater as well.
Whether you are purchasing your first home, or would like to refinance the mortgage on your existing home, 1st Capital Mortgage, LLC can help you with all of your Tulsa 184 loan needs. Do not hesitate to contact us today for more information on Tulsa 184 loans.