Financial transitioning: Starting with the big stuff

Today’s guest post is by Tim Richmond, who shares about how to take advantage of a specific government mortgage program for purchasing, refinancing or building a home at a low interest rate on or near an Indian reservation.  Tim is a writer, amateur historian and blogger who writes about the economy, finance, sustainable living and home ownership. He resides in California and writes for the Native American home loan specialists of http://www.1tribal.com.

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Do you know about HUD 184?  

Some of you may not know this program exists. HUD’s Section 184 can help fund home ownership or refinance mortgages for Native American tribes and Alaskan Native communities. So, whether you live on a reservation or not, you may qualify to buy a home with the help of this program.

Where to Begin

Find a knowledgeable agent to help guide you through this process…you will need them!   The first thing you need to do is make sure your tribe is on the list of those who are eligible. If you don’t find yours there and want to be added, get in touch with HUD. They are very willing to help you be a part of the Section 184.

If you have located your tribe on the list, you will need to verify that a survey of the land has been done. If there hasn’t been one done, you can schedule one. No loans will be approved without that being done.

You need to know and understand the difference between having an allotted parcel or an assignment. Which one do you have? Were you gifted with the land or has the tribe assigned you with it? A lease will need to be attached to the land if it was assigned to you. Generally, a lease on the land is for about ten years longer than what the home loan is for, sometimes as long as 50 years.

Once that has all been determined, work closely with your agent to get your loan approved and the funds loosened to get your project underway. The Section 184 deals with potential home owners to increase the amount of homes owned and lived in. It will fund refinancing, remodels, and new construction too.

This feature is based upon your debts and if they are current more than a credit score. You will need to bring any delinquent accounts up to date before you can get approved. This is a program to benefit the people and encourage home ownership. You can still be penalized for non-payment of your mortgage, the same as any other consumer, so be prepared to get into what you can afford and pay it on time.

What can you do to brace yourself for a higher payment? Start taking out an extra couple of hundred dollars a month as mortgages tend to raise your payment a bit. Just set it aside and if you are one of the lucky ones that find a home where your payments are about the same as your rent, you have some money stashed away and you know that you can afford what you are about to jump into. If not, you are used to paying a higher dollar already so the transition won’t affect you any.

Buying a home is a huge commitment, one that most dream of accomplishing. This is a great tool for helping you get into your own home or even remodeling your home. Live comfortably and happy in your abode and utilize the programs that have been put out there for you to use in your favor.

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