Buying a house in this crazy market is extremely overwhelming. Most people need all the help they can get. The good news is that the government provides loans for specific groups of people (low-income individuals or veterans, for example) where the borrower doesn't have to provide as much down payment or the terms are a little more flexible. What some might not know is that the government also provides a special loan for Native Americans: a Section 184 home loan. Here is how you can qualify for one of these loans:
You Are Part of a Native American Tribe
Since this loan type is specifically for Native Americans, you need to be a Native American or Native Alaskan (Native Hawaiians can qualify for a different loan called Section 184A). You will need to show actual proof of being an enrolled member of a federally recognized tribe. However, only one person on the loan has to be a tribe member, so if you're married to or living with someone who isn't a Native American, you can still qualify.
You Are Looking For a Home on Eligible Land
Section 184 home loans don't apply everywhere in the United States. Some states and counties are not eligible. However, you don't necessarily have to look for a house on a reservation either. This home loan applies to homes both on and off reservations. Keep in mind, though, that if you are looking at reservation land, then the tribe that owns the land will need to approve the loan as well.
You Can Make Timely Payments
This home loan is not very driven by credit score, so that should help you feel a little relieved if your credit isn't perfect. However, you do need to be able to show that you can be responsible with payments in order to be approved. Tax liens or payments that are more than 30 days late will look bad when the lenders review your credit history. If you do not have a credit score at all, they will be able to look at rent payments or other bills in order to see how timely you pay them.
You Are Looking For a Single-Family Home
You will only qualify for this loan if you're searching for a single-family home. If you are looking for a commercial loan, you'll want to look elsewhere. However, the type of house you can purchase isn't very restricted: it can be a newly constructed house or an already existing house. You can also use this loan for rehabilitation or refinancing on a house.
For more information on whether or not you qualify for this loan, you'll want to talk to Section 184 home loan lenders, like Today Lending. Just remember that not all lenders are approved by the HUD, so double check that before you get too far. But HUD-approved Section 184 home loan lenders will be able to help you on your way to owning your own home!