If you're Native American, then you may be wondering if there are any special home loans available to you. The answer is yes—Section 184 home loans are designed specifically for Native Americans and Alaska Natives. They are easier to get than conventional mortgages, but they require you to go through dedicated Section 184 home loan lenders. And they do require that you be registered as a Native American with a tribal authority.
This article will discuss what Section 184 home loans are, who is eligible to apply for them, and how to go about doing so.
What Is A Section 184 Home Loan?
A Section 184 home loan is a mortgage that has been guaranteed by the United States government. This guarantee makes it easier for Native Americans and Alaska Natives to get home loans, as the risk is partially borne by the government. If you default on the loan, the government will pay the lender a certain amount.
Who Is Eligible To Apply For A Section 184 Home Loan?
To be eligible for a Section 184 home loan, you must first be a member of a federally recognized tribe or Alaska Native Corporation. You must also meet certain income requirements, and the property you are buying must be located in an area that is designated as native land.
You do not need a certain blood quantum to be eligible for a Section 184 home loan. However, you must be able to document your tribal affiliation and meet the other eligibility requirements. If your tribal affiliation does require a blood quantum, then that is what would qualify you for a Section 184 home loan.
Are There Credit Requirements For A Section 184 Home Loan?
There are general income and credit requirements for a Section 184 home loan. However, the credit requirements are not as strict as they are for other types of mortgages. You will need to have a good credit score and demonstrate that you can afford the monthly mortgage payments. Requests are taken on a case-by-case basis like a VA loan, so there's no strict credit requirement.
If you are interested in applying for a Section 184 home loan, your first step will likely be to go down to your local USDA Rural Development office. They usually have a list of the local lenders that provide these types of loans. You can also search for Section 184 loan lenders online. Because this is such a unique type of loan, you shouldn't assume whether you can qualify for it; it's best to talk to a loan officer directly.