Section 184 American Indian Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is a mortgage product specifically for American Indian and Alaska Native families, tribes, Alaska Villages or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership in Native American communities such as Oklahoma City.

With Section 184 financing you can get into a home with a low down payment, no mortgage insurance, and flexible underwriting.   If you are a potential homebuyer, and meet the requirements, Section 184 is a great product. Thanks to the low down payment requirement of 2.25% for loans over $50,000, and loan amounts under $50,000, your down payment is 1.25%. Also, you don't have to pay a mortgage insurance premium each month. Instead, a one-time, 1% loan guarantee fee can be added to your final loan amount.

You are eligible to apply for the loan if you are a member of any of the Federally recognized tribes in Oklahoma.  Those include the following: Absentee-Shawnee Tribe of OK Ponca Tribe of OK Chickasaw Nation Kialegge Tribal Town Cherokee Nation of Oklahoma Sac and Fox Nation of Oklahoma Comanche Indian Tribe Iowa Tribe of Oklahoma Choctaw Nation of Oklahoma Otoe-Missouria Tribe of Oklahoma Wichita and Affiliated Tribes Miami Tribe of Oklahoma Citizen Potawatomi Nation Kaw Nation Kiowa Tribe Quapaw Tribe Apache Tribe of Oklahoma Pawnee Tribe of Oklahoma Seminole Nation Oklahoma Delaware Nation Muskogee Creek Nation Alabama Quassarte Tribal Town Peoria Tribe of Oklahoma Osage Tribe

Some of the benefits of Section 184 loan are: Available on tribal trust, individual allotted trust or fee simple land in an Indian Operating Area . Low down payment of 1.25% to 2.25% based on the lower of the appraised value or cost to acquire the home. Refinance eligibility. The maximum loan is 150% of the FHA mortgage limit subject to appraised value and down payment requirements. 1% financeable guarantee fee at closing (no private mortgage insurance or monthly MIP). It is the lowest cost of any government guarantee or conventional insurance program in Indian country. There is no monthly premium for a 184 loan. Eligibility includes: New construction, rehabilitation, and purchase of an existing house. One qualifying ratio: 41% total debt to gross income ratio which can be exceeded with compensating factors. Single close construction (permanent) loan where only one closing is required. Monthly mortgage payments begin after closing. At closing the amount allocated for construction or rehabilitation plus a 5-10% contingency and up to 6 months mortgage payments are placed in an escrow account and are drawn down as the work is satisfactorily completed. 100% guarantee to the lender in the event of a foreclosure and claim. A strong secondary market exists: Fannie Mae, Freddie Mac, FHLB of Seattle, Ginnie Mae and some state housing finance agencies. Loans may be assumed by a creditworthy borrower that meets program eligibility.

Call Jolynn to find out today how you can begin the steps to home ownership!