Ready To Buy Your First Home? Why You Should Work With A Section 184 Home Loan Lender

If you're ready to buy your first home and you're a member of a federally-recognized Native American Tribe, don't go with a conventional home loan. Choose a section 184 home loan instead. Section 184 loans are designed to help Native Americans gain access to the housing market — both on and off native land. If you're not familiar with section 184 home loans, here is some information you need to know. 

Your Interest Rate Is Not Based on Your Credit Score

If you want to buy your first home but you're worried about your credit score, it's time to talk to a lender about a section 184 home loan. When you apply for a conventional home loan or an FHA loan, the interest rate you receive is based on your credit score. Luckily, that's not the case with section 184 loans. Instead, the current interest rate you receive is based on current market interest rates. That means you'll get a great rate, regardless of your current credit score. 

Low Down Payment Requirements

If you've been locked out of the housing market because you don't have a large enough down payment, it's time to consider a section 184 home loan. Some home loans may require up to about a 5% down payment, which can be difficult to come up with. However, section 184 home loans only require a 2.25% down payment for any home loan over $50,000. That means you can buy the home of your dreams without the large down payment. 

No Worry About Adjustable Rates

If you're worried about adjustable-rate mortgages that increase your monthly payments year-after-year or that leave you with a large balloon payment down the road, don't be. Section 184 home loans don't require adjustable rates. Instead, you'll be locked into a fixed-rate mortgage, which means your payments will stay the same throughout the life of your home loan. With a fixed-rate loan, you'll be able to create a sustainable budget for you and your family. 

Not Just For Existing Homes

If you want to build your own home but you're worried about the loan process, talk to your lender about the benefits of a section 184 home loan. One of the great things about the section 184 home loan is that you're not limited to an existing home. You can use your section 184 home loan for a new home construction project or even for the purchase of a manufactured home.

Talk to a lending company, such as Today Lending, to learn more.

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