Are you going to be buying a home with a mortgage and know that you are eligible to receive a Section 184 loan? This is a special type of loan that Native Americans are eligible for, and it can provide some advantages over standard loans that make the product worthwhile. Here are a few things you need to know about this type of mortgage. 

You Need A Qualifying Debt-To-Income Ratio

One of the first things you should look at is what your current debt-to-income ratio would be after receiving a mortgage. At the moment, you currently need no more than 41% of your income each month to go toward debts to qualify. This includes everything that you owe money on, such as credit card debt, student loans, car payments, and your future mortgage. If you exceed that 41% requirement, you may need to pay off some of your debts so that the payment goes away, or pick a home that is cheaper and would add less to the debts that you owe each month.

In addition, be aware that there are no income limits with a Section 184 loan. You won't be disqualified because you make too much money. As long as you limit your debts, you should have no problem qualifying. 

You Need A Small Down Payment

If you do not have that much money on hand for a down payment on your home, know that it's okay when you use a Section 184 loan. The minimum requirement for a down payment is only 2.25%, which is low when compared to other mortgage products out there. This makes buying a home much more accessible for Native Americans that do not have the large down payment of conventional mortgages. Of course, providing a larger down payment is always preferred, since it still reduces the loan value and total interest owed. 

You Have No Limits To Gifts Or Financial Assistants

Sometimes people seek help from family members when it comes to getting the money they need to buy a home. Thankfully, a Section 184 loan does not have any limits on the amount of money that can be given to you toward the home. If you do not have any money for the down payment, know that you can have all of it supplied for you, and it won't count against your eligibility. 

Reach to a local Section 184 loan lender for more information.