If you are an American Indian or an Alaska Native who is thinking about purchasing a home, you could be thinking about applying for a Section 184 home loan. After all, you might have heard that these loans can make it easier and more affordable for Native Americans to purchase a home. You might be really counting on this loan, so you could be wondering if there are things that you can do to increase your chances of getting approved. These tips should help steer you in the right direction so that you can hopefully get approved for the loan that you want.
Bring Along the Proper Documentation
First of all, you should know that you will need to bring along all of the proper documentation if you want to be approved for a Section 184 home loan. You will need to bring along proof that you are, in fact, either an Alaska Native or an American Indian, so bring along your tribal card or a letter from the Bureau of Indian Affairs. Additionally, you will need to bring along proof of your income and other documentation. It never hurts to call your loan officer ahead of time to find out what you need to bring when you're applying for your loan.
Make Sure the House Falls Within the Right Price Range
There are maximum limits in regards to how expensive a home can be when you are purchasing it with a Section 184 home loan. This is based off of the median home price in the county that you are planning on buying a home in. Additionally, you will only be able to qualify for the loan if you can afford to make the monthly payments while covering your other debts, so you should pay attention to your income. While keeping these numbers in mind, you can determine the price range that you should be looking at when purchasing a home.
Have Your Down Payment Ready
Although one of the perks of taking out a Section 184 home loan is the fact that you typically don't have to have a high down payment in order to purchase a home, you will be required to have a down payment in most cases. Therefore, before you apply for your loan, you will probably want to save up what you can so that you will be prepared to pay a down payment. After all, not only will this help you get approved for your loan, but it can help you reduce the amount that you have to pay each month in monthly mortgage payments, too.
For more information on Section 184 Home Loan Lenders, please contact a local business.Share