Most people don’t buy real estate with straight up cash. The scale of money involved with property acquisition is too large for people to handle without a mortgage. This is no different for those people living on tribal land.
Due to tribal land being held in trust, it’s much harder and often impossible for tribal residents to secure a mortgage from a private entity. This inherently makes it more complex for a Native American to fulfill part of the American Dream that surrounds owning a home.
The good news is that HUD 184 home loans help people secure mortgage on tribal land. This is beneficial for a number of reasons, but mainly in that it provides opportunity. Opportunity is what helps people realize their dreams, and this is a practical way that Americans on tribal land can get there.
The Nuts and Bolts of Native American Mortgages
There are certain things you need to know about HUD 184 home loans, firstly to help you know if you’re within the target audience of their offering, and also if they’re the right avenue to help you within your particular situation. The audience at Indian Voices is multifaceted, and these loans are not for everyone. Some things to know:
- You must be registered as a member of a federally acknowledged tribe to be considered.
- Down payments on these loans can be as low as 1.25%. This is very low and makes purchasing a house much more viable for people.
- Not usually hidden terms or fees, although you need to make sure to check the fine print of whichever lender you decide on.
- Doublewide and smaller/movable homes are allowed in agreement considerations.
- These mortgages can be used either to purchase a property on tribal land and/or upgrade an existing property as a Native American.
Mortgages help people acquire the property of their dreams. This is significant, as HUD Section 184 loans assist Native Americans in finding a fair chance in the real estate journey, even if they live on tribal land. There is absolutely no reason that people living on this land should be limited in their access to the American Dream. These agreements aren’t suitable for each person in every tribe, but the point is that they are a viable resource to consider for many. From there, the possibilities are limitless.
Tim Richmond writes about all things real estate.