Looking For a Place to Call Home
The Minnesota Chippewa Tribe’s Home Loan Program provides financing to members of the Minnesota Chippewa Tribe.
Homebuyers
The following information will be needed to make a determination on your application:
- Name & Addresses of Landlords for the past 3 years
- Name & Addresses of employers, along with date of employment for the past 3 years for each person residing in the household
- Two most recent pay stubs
- SIGNED Tax returns for the past 2 years to include w-2's
- Copy of Driver’s License or Photo ID
- Copy of Social Security Card
- Proof of Enrollment in MCT
- Other sources of income; social security, retirement benefits, per capita income
- List of all liabilities & assets
- Two months of recent bank statements (checking & savings accounts)
- First time homebuyer certificate is required. MCTFC provides four (4) classes per year – two (2) in the spring and two (2) in the fall. Check the website for dates and locations or contact our office for more information. You may obtain a certificate by taking a Homestretch class at www.hocmn.org. NOTE: Certificate must be good within six (6) months of closing.
Buying Property
Once you have selected a home to purchase, the lender will conduct an appraisal of the home/property to determine its value and ensure that it meets the MCTFC’s minimum specification requirements.
Since the lenders security is the subject property, the value must meet or exceed the loan amount.
Income
The income of each borrower to be obligated for the mortgage debt must be analyzed to determine whether it can be expected to continue through the first three years of the mortgage loan. Your new house payment plus other monthly debt should total no more than 40% of your gross monthly income.
Your proposed house payment should total no more than 27% of your gross monthly (before tax) income.
Financing
You must be aware of four factors that lenders look at when deciding whether you are qualified called the “Four C’s”.
- Capacity (Your Income)
- Cash (Your Down Payment)
- Character (Your Credit)
- Collateral (The Property)
Your financial situation and credit history will determine your ability and willingness to repay the loan. The property serves as collateral for the loan.
