If you're Native American or an Alaskan tribal member, then you can apply for a Section 184 home loan. This mortgage financing program is designed to make it easier for tribal members to own their own homes.
What are the benefits of using a Section 184 home loan?
1. Low Interest Rates
The interest rates you get on a home loan affect its affordability. If you are taking out finances, you want affordable repayments that won't put your finances under too much stress. This can be a problem if you can't meet standard lending measures. For example, if your credit rating isn't great, then your interest rates typically go up.
Section 184 home loans have lower interest rates than regular products. Their rates connect to the mortgage market rather than to your credit score. So, you'll find it easier to get an affordable rate.
2. Low Down Payment
One of the main barriers to home ownership is the down payment. Lenders require you to pay some money upfront before you can take out a mortgage loan. If you don't have a lot of savings, then making the correct down payment can be difficult.
Section 184 loans come with reduced down payment limits. This makes it easier for you to buy a home more quickly.
3. Fairer Fees
Mortgage lenders can charge a range of fees during your mortgage application and term. These fees all add to your costs; sometimes, tribal members are charged more than other borrowers.
If you take out a Section 184 home loan, then the fees you pay are fairer. The program monitors fees and prevents lenders from levying unfair charges.
4. Personalized Underwriting
Regular home loan application processes are usually highly automated. If your application doesn't tick every box as it goes through the system, then you might not get approval to take out the loan. Or, your interest rates might be higher than the norm.
If you don't have a regular financial track record and personal history, then you might find it hard to get the loan you want. You might have to pay more to borrow.
Section 184 loans are approved on a more personalized basis. Lenders look at each individual and their circumstances rather than relying on automated systems.
To get started, contact a company like Today Lending. Section 184 home loan lenders can talk you through your options and help you decide whether to apply for a loan to buy, build or rehabilitate a property.
