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  Native American Housing Loans

Under the Native American Conventional Lending Initiative (NACLI), Fannie Mae has created conventional mortgage products that can be used by Native Americans on unrestricted fee simple land, federally restricted trust land, and tribally restricted fee simple land.

This includes a loan product, available on fee simple or restricted lands, that requires only a one percent down payment from the borrower's own resources when additional mortgage insurance is provided. Additional requirements may apply based on the legal status of the loan.

Loan Features

• Fixed-rate mortgages with terms of 10, 15, 20, 30, or 40 years.

• Available to any person living on restricted lands of a Fannie Mae-approved tribe. Individuals who are not tribal members generally have to get permission from the tribe that has jurisdiction to live on the trust land. Members of Indian or Alaskan tribes and Indian Housing Authorities (IHAs) also are eligible borrowers.

• Available for one- to four-family principal residences, including condominiums and manufactured homes permanently affixed to the property.

• Generally, NACLI mortgages include standard conventional fixed-rate loans, mortgage loans and options under Fannie Mae's MyCommunityMortgage™, Community Home Buyer's Program™, Fannie 97®, Fannie 3/2®, Community Seconds®, FannieNeighbors®, and Rural Housing Service Direct Leveraging loans. Available mortgage products may vary by tribe.

• One percent borrower down payment loans are available in conjunction with PMI Mortgage Insurance Company. There may be additional loan requirements based on the legal status of the land.

Considerations

• You may be able to build a home and get permanent financing with one mortgage and one loan closing by using HUD's Section 184 and Section 248 housing programs.

• For Section 184 loans, a tribe must be approved by HUD's Office of Native American Programs to participate.

• For Section 248 loans, a tribe must be approved by the Federal Housing Administration (FHA) of HUD.

Example

Here is a hypothetical example:

• $100,000 purchase price

• 1% down payment

• 1% origination fee and 15 days prepaid interest

• 30-year fixed-rate

• 8% interest rate

• 8.6053% APR (which includes estimated mortgage insurance)

• $726.43 monthly payment of principal and interest plus $51.98 for estimated mortgage insurance

The interest rate and APR shown are examples only and are not intended to represent actually available terms.

Community Seconds, FannieNeighbors, Fannie 3/2 and Fannie 97 are registered trademarks and Community Home Buyers' Program is a trademark of Fannie Mae.

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