Section 184 Indian Home Loan Guarantee Program

[3MV]

Is anyone on this board familiar with this program.

"Section 184 home loans are guaranteed 100% by the Office of Loan Guarantee within HUD's Office of Native American Programs".

The down payment required is only 2.25%, and they do not require PMI, a one-time 1% up front guarantee fee is paid at closing and can be financed into the loan. There is no credit scoring, borrower must have no deliquencies for past 2 years, any judgement must be paid.

I will be needing to buy a home before May 1. Right now my EQ score is at 593 and TU is 618 from this site. I am waiting for a new CC to report (opened in January) and for 2 late payments to be removed which should be happening any day. I will also be down to 1 INQ in March. My history is sparse. I have a one year old car loan that has never been late, one credit card that is not reporting yet, and no mortgages. I have 2 paid judgements from almost 3 years ago and a 4 year old unpaid charge off that I am working on paying. I also have 2 collection accounts. One of those should fall off this month the other  I am trying to get removed via PFD. I really expect my score to go up in the next few weeks.

I am Native American and live in Oklahoma which does the most of these type loans. I think I am in good shape to qualify for this program but wanted to know if anyone else has had any experience.

[Anonymous]

I got one of these loans in Oklahoma and am now in the process of doing a streamline refinance on it to take advantage of lower interest rates and go to a 15-year loan.

Try calling Gateway Loans or Wells Fargo, both of whom do a lot of these. They will tell you if you qualify within a few minutes over the phone.

[RickyRay]

I too am originally from Oklahoma, My late wife was cherokee, I am Klamath, anyway we had a home we bought from cherokee nation, About a year after she past away with the cancer, I sold the house and it was all paid for, they never reported on my CA reports. So now after almost 7 years later I am applying for this loan to. I found out lots of good things about this type of loan. Its federal so as long as you are a member of a Federally reconized tribe you can apply. They do not look at credit scores. If you have less than a year of credit history (Like I do) then you can use your rental statement reciets from your current landlord.  Must be atleast 1 years worth. You cant have any current derogs on your CRs. I am going to go threw Wells Fargo. These loans are good over most of America, Some states its statewide others are limited to certain counties with in the states. You cant have more than 41% utilization for everything, including the house payments. If your loan is less than $50,000 then 1% down will do. Over $50,000 then %2.5 I think is your down payment......so now is good time to buy while the homes are much cheaper. So far what has been your experience with this deal? Has it been good or bad?  Any other advice on this?   Thanks in advance

[3MV]

OP here, my timeline took a little longer than I thought. I had to wait for my divorce to be final before starting the homebuying process. I am a member of the Creek tribe, and I am going through them for downpayment assistance. They award 25k to qualified members. I attended a homebuyer class last weekend that my tribe gives and we are just waiting on funds from the tribe. Funds should be available Aug 1 and as soon as that happens I can start looking and apply for the section 184 loan.  I am very excited to start the homebuying process. Not sure who I will use as a lender yet. I want to use someone that has a lot of experience with these loans.

[RickyRay]

Maybe Wells Fargo, they are nation wide bank and I called them and they have several Loan People that does this in South Dakota. But they will finance all over america.

I talked to a Nate Schmidt and he has a web site:   www.nateschmidt.com Tel: 605-575-6324. Their are more than them, I also found one in Colorado, they only do these types of loans. They dont look at credit score much as long as you dont have any derogs (bad stuff on your credit reports) you should be ok, and your tribe is helping out with that large down payment  THATS AWSOME!!! You should do just fine with all of it. Go for the gusto on this one, If you can afford a good house payment $400 or $500 a month, Get a goody out of it, really look around and take advantage of the program. I am going with the Wells Fargo myself, becouse of their good history and I think it would look better on my credit reports. I need all the help i can get on my credit reports, I am trying to rebuild my credit after being a ID theft victim. Anyway Best of luck to you. Hope that helps.