After 10 years of marriage, I’m still enjoying living in the first home I moved into with my husband. Buying a first home can be one of the most exciting events in a person’s life. Before making this important expenditure, people need to first sit down and determine how they will successfully finance it. After all, a home will likely be the most expensive purchase you make in your life. Talk to a loan officer and determine how much money you can reasonably borrow. Then, decide how much money you want to use as a down payment. You also must decide how many years you will finance your home for. On this blog, you will learn about the process of buying a first home with a loan.
A section 184 loan is a special type of loan program that tribal members can apply for when they want to finance a home. It's an amazing opportunity and seeking it won't be filled with stress if you manage this application process appropriately.
Don't Worry About Credit Score
With a traditional home loan, your credit score is certainly going to come into the equation. It affects interest and that may have you worried heading into this home loan process. It shouldn't; with a section 184 home loan, you aren't getting an interest rate based on your credit.
Rather, this rate is dependent on the market exclusively. So whatever the market is doing at the time in real estate, that's going to impact what type of interest you're able to get on the section 184 home loan. That should make this application process much less of a burden.
See What Property Type Is Accepted
You may be interested in a lot of homes in a certain area, but before you get too far into the house search, realize that there are requirements for homes you can finance through a section 184 home loan. Find out what these are so that you know what to go after early in your home search.
Typically, single-family homes are the only properties covered by a section 184 home loan. It doesn't hurt to check with a lender that deals with these loans if you find a property that is a bit different than a single-family loan. Once you get this worked out, you can have a more successful home search.
Be Careful with Gifts
You may be given money as a gift to help you fund a home. If you're still going to be applying for a section 184 home loan, then you want to make sure gifts are facilitated correctly so that you don't do anything illegal in the eyes of the lender that is giving you the loan. See what protocols they have with gifts, such as how they're supposed to be transferred and the documentation needed to prove where the gifts came from.
Applying for a section 184 home loan is a great idea if you want some financial assistance on this important loan that will affect your life for quite a while. Look at the moving parts and impactful details so that you can get through this application process just fine. Reach out to section 184 loan lenders to learn more.