The program has been around for almost two decades now and too few Native Americans know of these benefits that are exclusively for them. The section 184 program is run by ONAP (Office of Native American Programs) which is a department of HUD (Housing and Urban Development).
ONAP sets the guidelines for this program, underwrites the loan (unless lender has its approved underwriter), and issues the government loan guarantee backing the loan. The result being that 184 loans are not subject to the same strict guidelines and credit score requirements that are being imposed these days on FHA and Conventional loans. The ability of the borrower to pay and his recent payment history are looked at instead of just his/her credit score.
This “makes sense” underwriting helps many deserving people become home owners and at the same time ensures continued funding from congress every year. A certain annual budget is given by congress for this program, and although we have squeezed by every year so far it is important to take advantage of it as soon as you can, as unique programs like this are the first to be cut or reduced.
One hundred eighty-four loans can go up to $300,240.00, have no income restrictions, and hold no location restrictions in the state of Oklahoma. They also require no monthly mortgage insurance which is probably the most popular benefit of the program, and is the main reason that the payments for this loan are almost always lower than other mortgage loans.
If there is a catch to the program it would be the 1 percent loan guarantee fee paid to the government to back the loan. Such guarantee fees are financed into the loan and are much less with a 184 loan compared to the 2 percent required with FHA or 2.15 percent with VA. Down payment is also minimal in comparison. 2.25 percent is the required down payment and even that can be a gift from a family member or a grant from your tribe. This program also promotes improvement of current mortgages as no cash-out refinances go to 97.75 percent loan to value at very low interest rates. Cashing out home equity is also allowed; however the underwriting is much stricter since it is not in the spirit of the program. Rehabilitation to your current home or to a home you are purchasing is also allowed under this program for up to $30,000 in repairs. Gateway Mortgage Group is one of the few select lenders that are approved to fund this loan.
They are also a part of an even more select group having their own 184 underwriter, which cuts down turn time from 4-6 weeks to 3-4 weeks. Gateway is based out of Tulsa, Oklahoma and services all parts of the state.
Even more importantly, they service 100% of their 184 loans. If a borrower has a question about their loan, they call the Tulsa office directly. Gateway Mortgage is #1 in Oklahoma and #2 in the nation for generating Native American home loans so their expertise is second to none.
To find out more about this loan you can call Gateway at 918-526-5208 or visit “www.joryconly.com”.
It generally takes a loan officer approximately 30 minutes to let you know how much you qualify for or what you need to do to be qualified as soon as possible. Gateway’s goal is two fold. We want to increase awareness of the product as well as get everyone approved no matter if it takes 10 minutes or 10 months. Even if you think you will not qualify now, our experienced loan officers will let you know the exact steps to be approved as soon as possible so do not hesitate. It is always a good idea to be pre approved whether you are sure or not.
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