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The path to homeownership can often seem like a winding trail, filled with unexpected twists and turns. However, for Native Americans, there's a unique opportunity that can transform this trail into a straight, well-lit path: the Section 184 Native American Home Loan. F&M Bank is here to guide you through this journey.

What is a Section 184 Native American Home Loan?

The Section 184 loan program was initiated by the U.S. Department of Housing and Urban Development (HUD) in 1992. It was designed to promote homeownership and enhance access to capital in Native American communities. By guaranteeing these loans, the federal government motivates lenders to offer improved access to mortgage financing for Native Americans. Section 184 loans can be used to purchase a home, construct a new home, rehabilitate a home, or refinance a home. F&M Bank is proud to uphold this commitment to fortify and support Native American communities.

The Advantages of a Section 184 Native American Mortgage

The 184 Native American home loan is tailored to cater to the distinct needs of Native Americans. Here's how it can aid your homeownership aspirations:

  • No Monthly Mortgage Insurance Charges - You will not incur any costs for mortgage insurance each month.
  • Unrestricted Income for Applicants - There are no maximum income limitations for submitting applications.
  • No Prepayment Penalties - You will not be penalized for making payments ahead of the scheduled time.
  • Low Initial Down Payment Requirement - Only a 2.25% down payment is needed to secure the mortgage.
  • Interest Rates Independent of Credit Scores - Interest rates are determined by the market, not by the applicant's credit history.
  • Manual Review and Approval Process - Each application undergoes a manual underwriting and approval procedure.
  • Availability of Short-Term, Fixed-Rate Loans - Fixed-rate loans, with a duration of up to 30 years, are available.

Eligibility for a Section 184 Native American Mortgage

To qualify, borrowers must be enrolled members of a federally recognized Native American tribe. Additionally, a credit score reflecting financial responsibility is essential. Stable and consistent income is also a prerequisite to ensure loan repayment capability. Loan limits will differ based on the county you reside in and the type of home you want to purchase. Check out a full breakdown of Section 184 loan limits by state and county.

Property Qualifications for a Section 184 Native American Mortgage

The property must be located in an eligible area; fortunately, the entire state of Oklahoma is considered eligible. The property should be the borrower's primary residence, and it must adhere to specific safety and quality standards.

Embrace Your Heritage, Secure Your Future

F&M Bank is not just a financial institution; it's a community. With branches in Edmond, Yukon, Guthrie, Piedmont, Crescent, and Kingfisher, we understand the unique needs of our community. If you're contemplating a Native American home loan, Jolynn, our specialist, is here to assist you. Opting for a local bank like F&M Bank for your home loan has its perks.