Oklahoma has always been “Indian Country”.  With America’s highest concentration of Native Americans, Oklahoma is home to 35 different tribes.  Well over 1/4 of the people now living in Oklahoma have some type of Indian heritage.
Because of this high concentration of Native American’s, the HUD section 184K loan is an attractive, yet little known program available for new homeowners in the Oklahoma City metro area.
Similar to an FHA loan, the HUD 184K loan offers nearly 100% financing loan and most importantly, it requires no monthly PMI (private mortgage insurance) which can significantly reduce your monthly payment.
There are many advantages to using a Section 184:

  • Low Down Payment: 2.25% on loans over $50,000 and only 1.25% on loans under $50,000
  • Low Interest Rates: based on market rates, not on applicant’s Credit Scores
  • Manual Underwriting: The Program utilizes a hands-on approach to underwriting and approval opposed to automated decision-making tools.
  • No monthly mortgage insurance: a one-time 1% up front guarantee fee is paid at closing and can be financed into the loan.
  • Protection from predatory lending: HUD monitors the fees approved lenders can charge Native borrowers. Section 184 loans cannot be used for Adjustable Rate Mortgages (ARMs).

What Can I use the Section 184 Loan for?

You can use the Section 184 Loan to:

  • Purchase an Existing Home
  • Construct a New Home (Site-Built or Manufactured Homes on permanent foundations)
  • Rehabilitate a Home, including weatherization
  • Purchase and Rehabilitate a Home
  • Refinance a Home (Rate and Term, Streamline, Cash Out)