Real Estate Connection According to the New Mexico Indian Affairs Department, the Land of Enchantment is home to 219,237 Native American citizens. Members of the 23 tribes associated with the 3 reservations and 19 pueblos located within our borders make up just under 10.5 percent of our state’s entire population. While many tribal members live on their respective homelands, a significant number live in the cities, towns and villages scattered throughout New Mexico. According to the U.S. Census Bureau, 5,018 of those tribal members reside in Dona Ana County.
Until the early 1990s, traditional mortgage lending was unavailable to Native American and Alaskan Native tribal members who wished to purchase homes located on tribal land. In an effort to address the lack of mortgage availability, Congress passed the Housing and Community Development Act of 1992 and the Section 184 loan program. Initially, the program applied only to loans made on tribal lands. In 2005, it was expanded to include loans made to tribal members living in most states, including New Mexico.
The loans, which offer many advantages over traditional mortgage products, are made by local lenders and guaranteed 100% by the Office of Loan Guarantee within the U.S. Housing and Urban Development’s Office of Native American Programs. The guarantee protects lenders in the event the borrower defaults on the loan.
Loans are underwritten using traditional FHA guidelines, which means that borrowers have to demonstrate that they have steady income and the ability to repay the loan. Credit is still an important component […]