Native Americans and Mortgages

American Indians, while still falling below manydo not have as broad a spectrum as the HUD
minorities, have several avenues open to them toloans and some of the terms may be somewhat
facilitate acceptance of mortgage applications. Theless attractive but they are quality mortgage
Federal Govt. has established these agencies inloans offered at good rates. The Fannie Mae
response to problems American Indians may faceorganization is a well respected entity in the
when applying for a traditional mortgage.nation, providing loans and mortgage information
American Indians can face extraordinaryto people nationwide.
difficulties in obtaining a traditional mortgage dueFreddie Mac also has a specialty division to assist
to economic depression in tribal lands and unfairAmerican Indians with attaining a home mortgage.
lending practices.They provide access to HUD loans and several
HUD provides Native American's with recourse toother programs designed to help Native
mortgages through the establishment of its OfficeAmericans. This institution provides information to
of Native American Programs, or ONAP. ONAPhelp Native Americans understand the options
offers American Indians several options inavailable to them and the difference between
mortgage types, loan duration, interest rates andwhat once was and what the industry has
amount of down payment. HUD's ONAP can bebecome today. Home loans to Native Americans
accessed through mail, in person or through Webconsistently fall behind mortgages to whites and
access; in addition, many websites offer aseveral other minorities. The programs listed
rundown of the benefits of ONAP's loans providingabove were designed with this in mind, to bolster
valuable information to American Indiansthe numbers of American Indian's successful loan
interested in HUD's mortgage loans. Some of theapplications. Traditionally, American Indians have
benefits from using HUD's One Stop Mortgagebeen poorly received by many institutions due to
Center are zero down payment, potentialtribal autonomy, poor economy in tribal lands and
refinancing, mobile home financing and veteransother issues of concern.
programs.One of the factors behind Native Americans'
A partnership between the Native American Bank,difficulty in obtaining mortgage loans is the
LenderLive and Greenpoint Mortgage has resultedsituation on tribal lands. Many times, the economy
in turnkey home mortgages for American Indiansof these lands is depressed, leading to low paying
for a number of purposes like rehabilitation,jobs and high unemployment rates. The American
refinancing and home buying. This partnershipIndians have begun a promising change, however.
provides American Indians with great resourcesJobless rates, though still worse than national
to help in getting a home loan. The Nativelevels, are plunging. Social reforms, land acquisition
American Bank is now in position to be theand internal tribal change are revitalizing tribal lands
number one lender to American Indians and toand thus the economy and feasibility of acquiring
reap the rewards of serving this growing sectorhome loans. Many groups are beginning to
of the industry.recognize the potential of the Native American
The Fannie Mae Organization has also createdpeoples and are actively courting their interest.
mortgage programs for Native Americans. These