As soon as I realized that my personal financial picture was a little bleak, I started thinking about taking out a personal loan. I wasn't really looking forward to going into debt, but I knew that if I wanted to solve a few short-term problems, a loan would be the way to go. I talked with a few of my local financial institutions to get a good idea of what they could offer me, and then I sat down to go over the paperwork. It was incredible to see how much money I could save by securing a lower interest rate. Check out my blog for more information about loans.
Are you eligible for getting a section 184 home loan and want to know more about it? Here are some of to know about this unique mortgage program that is offered to Native Americans looking to purchase a home.
The Down Payment
One of the nice advantages of a section 184 home loan is that the down payment requirements are fairly small compared to other mortgage products out there. You only need to have a down payment that is 2.25% for homes that are over $50,000. This can make buying a home very accessible for those that do not have a lot of money saved up.
The Refinancing
If you decide you want to refinance your home at a later date, know that you can still do so with a section 184 home loan. This is often a concern when people fear that they have to switch to another mortgage product if they want to refinance, which may have more strict lending requirements. All the standard section 184 home loan requirements will apply to any refinance that you do when you use the same mortgage product.
The Credit Requirements
What makes a section 184 home loan unique is that there are not any strict credit qualifications that you need to follow to get a loan. The underwriters will look at your unique financial situation and not strictly look at a credit score to qualify you for a mortgage. This can be great news for those that do not have a credit history that has debts, late payments, and anything of that nature, but may have a low credit score due to not having a credit card or have never borrowed money in the past.
In addition, your credit score is not going to affect the interest rate of your loan. Interest rates are based on the current market at the time, rather than tied to the number given to you in your credit report.
The Income Requirements
When it comes to income requirements for a section 184 home loan, you'll find that the requirements are a lot less strict than they would be for a traditional conventional home loan through a big bank. What underwriters will look for is stable income over the past few years, rather than making sure that you make a specific amount to even qualify for a loan. While income plays into your debt-to-income ratio, if you have very little debt then this is not something to be concerned about.
To learn more, contact section 184 loan lenders.
Share22 March 2021
