If you’re a Native American and you’re considering buying a home, you need to learn about the HUD 184 Indian Home Loan Program.
US Department of Urban Development (HUD) has an Indian home loan guarantee program that is a terrific option for those who qualify.
FHA loans usually require a 3.5% down payment, an upfront mortgage insurance fee plus monthly mortgage insurance. The HUD 184 loan program offers Indians of certain tribes a 2.25% down payment instead of 3.5% , a reduced upfront 1.5% loan guarantee fund which can be financed into the loan and no monthly mortgage insurance (there is a small .15% annual mortgage insurance premium at first). The monthly mortgage insurance that usually gets tacked on to your loan is gone. That means big savings every month and even bigger savings over time.
The program is available not only on reservation land, but it’s available in Albuquerque, Rio Rancho and everywhere else in the state of New Mexico. Not all lenders offer the program, but there is a list of participating lenders on the Indian Home Loan Guarantee page as well as a list of participating tribes which includes the Navajo Nation, Jicarilla Apache, Pueblo of Santa Domingo, Pueblo of Sandia, Pueblo of Tesuque, Zuni Tribe and more.
And you can use it for resale homes and for newhomes too. According to the HUD.gov website, “Section 184 loans can be used, both on and off native lands, for new construction, rehabilitation, purchase of an existing home, or refinance.
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If you are Native American who is looking to buy an Albuquerque or Rio Rancho home, please let me know and I’ll help you get in touch with a lender who specializes in the Indian Home Loan Guarantee Program.