4 Questions About Section 184 Loans
Are you eligible for a Section 184 loan, but do not know a lot about it? If so, you likely have a few questions about this mortgage product designed for Native Americans.
What Is a Section 184 Loan?
A Section 184 loan can only be used to buy a home that is located on real property. This means that you can't use a Section 184 loan to buy land with the intention of it being empty land since there must be some sort of permanent structure on it. This could include a manufactured home that is attached to a permanent foundation, a pre-existing single-family home, or land to build a custom home on it.
The land itself does not need to be purchased either, since you can lease land from a tribe as well. However, if you plan to build your home, know that you must buy to build right away. This is because the Section 184 loan includes the construction costs as part of it.
How Do You Prove Eligibility For a Section 184 Loan?
Be aware that the law requires a borrower for a Section 184 loan to be a member of a federally recognized tribe. This means that the tribes essentially decide who is a member, which determines eligibility for a Section 184 loan. Having a certificate of Native American blood is not enough in this situation.
Do Both Borrowers Need to Be Part of the Tribe?
One of the nice things about a Section 184 loan is that only one borrower needs to be a member of a federally recognized tribe to qualify. Your spouse can be on the mortgage and help qualify for the loan with their credit history and income, but don't have to be Native American as long as you meet the Section 184 qualifications.
Are There Location Restrictions For a Section 184 Loan?
The home that you purchase with a Section 184 loan does not have any geographic restriction as to where the home needs to be located. Even if the tribe you belong to is very far away from where you will be purchasing a home, that does not matter when it comes to applying for a loan. Feel free to live anywhere that you would like.
Do you still have questions about getting a Section 184 loan? Reach out to a company like Today Lending in your area that offers this mortgage product.
