The Significance Of Indian Tribe Loans
The American Indian and its many tribes co-existed on this land known as the United States long before the white man set foot there. They were, in essence, a simple people that lived off the earth and respected the goods it gave them. They did not tolerate waste but took only what they needed to survive.
The land was filled with all that the Indian Nations could ever need. As more and more white men came and infiltrated the land occupied by the Indian, the more obvious it became that the two could never co-exist. The white man hunted the buffalo for it hides and often left the meat to scavengers; meat that could feed a tribe for a long time.
Seeing the land as free, the white man battled with the Indian for more and more of the wide open spaces the natives called home. Battle led to bloody battle and little by little the great nations of the Apache, Mohawk, Cheyenne, Cherokee, and Chippewa, among many, were herded like cattle onto small land grants known as reservations.
This is when Indian tribe loans were in their infancy. The United States government promised many things to the Indian at this time and it was repeatedly written that the United States failed miserably in their attempts to fulfill promises of loans that were not just monetary but included the very food that the Indian ate.
To the present day, the Indians have remained a proud people. Although many still remain within the confines of their people’s reservations, others have chosen to live elsewhere. In return for the land that these people once called home, the United States government has continued to offer these people certain advantages. While living on the reserve they were not regulated by the laws of the white man and many of the taxes the white man pays are excluded from the Indian. If they choose to live off the reserve, they then become subject to all the regulations levied on the rest of the population.
There are a few of these proud people that strive to keep many of their old traditions alive and from time to time they will argue that they have been treated unfairly since day one. Whether or not this is considered to be true is merely the opinion of the person you speak with and it varies widely from man to man. While the majority have accepted their new way of life, some of the natives known as traditionalists, still fight for what they feel is rightfully theirs.
Today, you will find two federally funded programs aimed at assisting the American native. The first to be examined is the Indian Home Loan Guarantee Program or simply Section 184. The program was set up in 1992 by the Federal Housing Administration or FHA to assist Native Americans in purchasing a home. They must be included in what the government acknowledges to be a tribe. In addition, the applicant must be the occupant of the residence; the home has to be situated on a reserve; and the cost cannot exceed more than 150% of the greatest loan the FHA has approved previously.
Benefits of the Section 184 Loan Guarantee Program are exceptionally low down payments and they can be HUD assisted in the purchase. Other options include purchasing a home that is already built; purchasing one that you wish to build; one that requires rehabilitation; and refinancing an existing mortgage. Because the land belongs to the reserve, owning a home there offers a whole new set of circumstances when it comes to making a purchase.
The second type of loan that is available is known as the Indian Home Loan Guarantee Program. Authorized by the Public Housing Agency, this loan is aimed at making purchases affordable for those who are low income. The monies are awarded annually by block grant to tribes that have prepared an Indian Housing Plan. To be considered for this program applicants must be an American Indian; a Native American; a member of a First Nation; or an Alaska Native. These applicants must also prove their need of safe and clean housing and prove that they qualify on the basis of low to very low income.
Banks, lenders, and mortgage companies will often form a partnership under which the home purchase funds are made available to prospective buyers. There are a number of different mortgage types offered along with the duration of the loan, interest rates, and down payment. In addition, both Fannie Mae and Fannie Mac have created specific divisions to deal with Native mortgages. Applicants must submit a completed application form with all information therein being 100% accurate. Government loans can be full of bureaucratic red tape, and procedures must be followed to the letter for approval to be gained.
This video below will explain more about Native American loans (for anyone)
Another option is the possibility of a Veteran’s Administration loan. In order to qualify for this type of loan, a Native American must have been honorably released from any conflict during and after World War II, including the Korean and Vietnam conflicts. If you were not a member of any of the armed services during these periods, you can qualify with peacetime service for a longer duration of time. Your tribe must be in the VA loan program and the applicant needs to fill out an eligibility form. You can purchase an already constructed home, or have a new one built. A property appraisal must be done and if the property qualifies, income must be verified before the loan can be closed.
All of these Indian tribe loans have been and can be of great assistance to the Native American. Due to the fact that many of these reserves have fallen into great despair with high rates of unemployment, these loans can be a means by which these people can escape the chains of poverty. The situation on many tribal lands is one of great depression with unemployment rates far above the national level. Native Americans have much to offer to society and with this attribute being recognized much is being done to improve the dire economy these people presently live in.