If you are a Native American and in need of a mortgage, you are in a great position. There are several government loan programs designed specifically for Native Americans. Olympic Northwest Mortgage is very active with the Native American loan programs.
Congress established the Section 184 Indian Housing Loan Guarantee Program in 1994. The program is designed to offer home ownership, property rehabilitation, and new construction opportunities for eligible tribes, Indian Housing Authorities and Native American individuals and families wanting to own a home on their native lands.
The Native American FHA Mortgage Insurance Program represents Fannie Mae's effort to open the door to lending on tribal trust or restricted lands by working with the sponsors of existing government loan products. Fannie Mae will purchase certain loans made under Section 248 of the National Housing Act, which authorizes the FHA to insure, and HUD to administer, certain mortgage loans made to eligible Indian families and tribes.
The Native American Housing Loan Guarantee Program/HUD Section 184 addresses limitations on access to mortgage credit faced by Native Americans living on lands reserved for them by treaty or federal law. Tribal judicial systems may fail to give the lender adequate remedies, including the right to acquire the property by foreclosure or assignment in lieu of foreclosure.
Under this program, Fannie Mae will purchase loans made under Section 184 of the Housing and Community Development Act, which authorized HUD to guarantee certain mortgage loans made to eligible Native American families, tribes, and Indian Housing Authorities (IHAs). Section 184 loans may be used to construct, purchase, or rehabilitate eligible properties. The loans do not require private mortgage insurance or the release of transfer-related restrictions. Title insurance is only required for fee simple land that is located in Indian country. Section 184 also removes one of the biggest impediments to purchasing a home by allowing eligible borrowers to finance closing costs as part of the loan.
The Rural Housing Native American Pilot/Section 502 Guarantee Loans also addresses limitations on access to mortgage credit often faced by Native Americans, much like the Native American Housing Loan Guarantee Program. The pilot was developed in partnership with the Rural Housing Service to use its Guaranteed Rural Housing loan product on tribal trust lands. It allows for a 100 percent loan to appraised value, which could enable the applicant to also borrow some or all of the closing costs.
For information or to apply for one of the Native American loan programs, please contact Dave Borcherding at (360)337-0113 or click on the name.
