Lending

NPH provides affordable and flexible mortgage lending products to assist customers with their home financing needs.  NPH works closely with you so that you fully understand the loan product and the loan process.  When available, NPH also offers down payment and closing cost assistance to eligible applicants. Our Home Purchase Advisors will determine your eligibility for any available assistance programs, and they will make certain you are well prepared to begin the loan application process.  Our goal is to create successful and sustainable home owners while providing the best service, the best products, and the best experience with all of your home financing needs.  

What is the Section 184 Loan Guarantee Program?
The Section 184 Loan Program was designed to provide access to mortgage financing to Native American and Alaskan Native tribal members. Section 184 home loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s Office of Native American Programs.  This guarantee encourages national and local banks to provide mortgage loans to Native Americans.  We are excited to announce that NPH is now a certified HUD Section 184 Lender.

Why Should I Use the Section 184 Loan?  There are many advantages to using a Section 184:
•Low Down Payment: 2.25% on loans over $50,000 and only 1.25% on loans under $50,000
•Low Interest Rates: based on market rates, not on applicant’s Credit Scores
•Manual Underwriting: The Program utilizes a hands-on approach to underwriting and approval opposed to automated decision-making tools.
•Growing National Network of Approved Lenders:  Network of approved lenders includes national companies and local banks to suit your needs.  Lenders have also been trained on the unique circumstances of Native homeownership.
•Section 184 Upfront Loan Guarantee Fee and Annual Mortgage Insurance: A one-time 1.5% up front guarantee fee is paid at closing and can be financed into the loan. In addition, loans with a loan to value of 78% or greater will be subject to an annual .15% mortgage insurance premium.
•Protection from predatory lending: Our Program monitors the fees our approved lenders can charge Native borrowers. Section 184 loans cannot be used for Adjustable Rate Mortgages (ARMs).
Knowledgeable Staff: Our staff understands the unique circumstances associated with lending on Native Lands including, working with Home Site Leases, and working with borrowers to achieve home ownership and to avoid default and foreclosure.

What Can I use the Section 184 Loan for?  You can use the Section 184 Loan to:
•Purchase an Existing Home
•Construct a New Home (Site-Built or Manufactured Homes on permanent foundations)
•Rehabilitate a Home, including weatherization
•Purchase and Rehabilitate a Home
•Refinance a Home (Rate and Term, Streamline, Cash Out)

Section 184 loans can only be used for single family homes (1-4 units) and for a primary residence. Since 184 strives to increase homeownership to all Native Communities, the guarantee funds are reserved for primary residences rather than second or investment properties.

Where can I use the Section 184 Loan?  Participating Tribes determine the areas where the Section 184 loan can be used. Many states are eligible in their entirety while only select counties are eligible in other states.

To learn more, Please Contact Belinda Hadley,  505-722-0551 or belinda@npfh.org

 


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