New construction on virgin land?
Who is doing these loans these days?
I understand there are a few. What I don't understand is why more American Indians and Native Alaskans aren't accessing the FHA 184 loan program. It is very much like the 203k but actually can repair a home like the 203k or purchase land and finance a brand new home unlike the 203k.
How about the down payment? 2.5% down payment is all that is required. If you have clients who are registered on an Indian tribe as well as Alaskan natives most anywhere in the USA. Participating Tribes determine the areas where the Section 184 loan can be used. Many states are eligible in their entirety while only select counties are eligible in other states.
PMI - A one-time 1.5% up front guarantee fee is paid at closing and can be financed into the loan. In addition, loans with a loan to value of 78% or greater will be subject to an annual .15% mortgage insurance premium.
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)
You can find out more on the HUD website
Well, to my surprise I found that some of my favorite lenders are doing ground up financing and some will finance the lot acquisition too with standard conventional financing. Nothing to do with FHA.