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Benefits
of the 184 Loan Guarantee Program
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- Available on tribal trust, individual allotted trust or
fee simple land in an Indian operating area
- Low down payment of 1.25% to 2.25% based on the lower of
the appraised value or cost to acquire the home
- Refinance eligibility
- The maximum loan is 150% of the FHA mortgage limit subject
to appraised value and down payment requirements
- 1% financeable guarantee fee at closing (no private mortgage
insurance or monthly (MIP). It is the lowest cost of any government
guarantee or conventional insurance program in Indian country.
There is no monthly premium for a 184 loan.
- Eligibility includes: New construction, rehabilitation and
purchase of an existing house
- One qualifying ratio: 41% total debt to gross income ratio
which can be exceeded with compensating factors.
- Single close construction (permanent) loan where only one closing
is required. Monthly mortgage payments begin after closing. At
closing the amount allocated for construction or rehabilitation
plus a 5-10% contingency and up to 6 months mortgage payments
are placed in an escrow account and are drawn down as the work
is satisfactorily completed.
- 100% guarantee to the lender in the event of a foreclosure
and claim.
- A strong secondary market exists: Fannie Mae, Freddie Mac,
FHLB of Seattle, Ginnie Mae and some state housing finance
agencies.
- Loans may be assumed by a creditworthy borrower that meets
program eligibility.
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