Home Purchase

The required minimum down payment is 2.25% for Section 184 loans over $50,000 and 1.25% for loans under $50,000. The source of funds for the down payment is flexible. Acceptable sources of down payment include: seasoned funds in checking or savings account, 401(k) or other retirement savings withdrawal, gift, proceeds from a secured loan or a grant.

Mortgage Application Checklist for Pre-Approval

1. 2 Years of W-2 statements, 30 days of paystubs, 2 years of federal tax returns, Award/Benefit Letter for Social Security/Disability Income, and Child Support Documentation, if applicable.
2. Bank statements with bank’s name, address, account numbers and balances for the past 2 months.
3. If renting please include name, address and phone number for your landlord.
4. 401(k) statements.
5. Valid ID.
6. Complete and signed Residential Mortgage Application.
7. Letter of explanation of derogatory credit (if applicable).

  HUD Section 184 Indian Home Loan Guarantee Program

Bay Bank is proud to offer the HUD Section 184 Indian Housing Loan Program. Bay Bank and its lenders are approved to originate Section 184 home mortgage loans through the U.S. Department of Housing and Urban Development (HUD).

Enrolled members of a federally recognized tribe may be eligible for the Section 184 program.

List of participating tribes

Indian tribes or Indian housing authorities also are eligible for Section 184 loans, under state-by-state eligibility requirements.

See if your state is eligible 

The Section 184 loan is a 15- or 30-year fixed-rate mortgage, fully amortized with regular monthly payments with escrow for homeowner’s insurance and property taxes. The loan features a low-down payment and flexible underwriting. 

Section 184 loans can be used on and off trust lands for:

• Purchase of an existing home
• Home improvements
• New construction
• Refinancing

Mortgage Application Checklist for Pre-Approval with 184 Loan Program

1. 2 Years of W-2 statements, 30 days of paystubs, 2 years of federal tax returns, Award/Benefit Letter for Social Security/Disability Income and Child Support Documentation, if applicable.
2. Bank statements with bank’s name, address, account numbers and balances for the past 2 months.
3. If renting please include name, address and phone number for your landlord.
4. 401(k) statements.
5. Valid Tribal ID.
6. Complete and signed Residential Mortgage Application.
7. Letter of explanation of derogatory credit (if applicable).

Mortgage Application Checklist for Re-Finance with 184 Loan Program

1. 2 Years of W-2 statements, 30 days of paystubs, 2 years of federal tax returns, Award/Benefit Letter for Social Security/Disability Income and Child Support Documentation, if applicable.
2. Bank statements with bank’s name, address, account numbers and balances for the past 2 months.
3. Copy of current mortgage statement.
4. Copy of homeowner’s insurance policy.
5. 401(k) statements.
6. Valid Tribal ID
7. Complete and signed Residential Mortgage Application.
8. Letter of explanation of derogatory credit (if applicable).

  New Construction

Building a new home is permissible through the Section 184 program on Fee Simple Land, Tribal Trust Land or Individual Trust Land, subject to state eligibility. This single-close construction loan allows you to have a fixed rate at the time you close your loan. With a Section 184 loan, there’s no need for a separate construction loan and an end loan that could add costs. Please contact a Bay Bank mortgage lender to discuss options.

Lot Loan

We offer lot loans to purchase vacant land with the potential to build at a later date. Rates and terms are subject to your credit score and a down payment.

Construction Loan

Our construction loan is designed as a line of credit for the building process of your new home. Customers can choose to pay the interest monthly or at the maturity of the loan. At the time of building completion, the construction loan would be refinanced into a conventional mortgage or a HUD Section 184 loan for fixed-rate financing.

 Home Improvements

One of the added benefits to the Section 184 loan is the ability to finance rehab/improvements for the home you are purchasing. Certain restrictions may apply. Please contact your Bay Bank mortgage lender for more information.

Home Equity Line of Credit (HELOC)

What is a HELOC? It is a revolving line of credit based on the equity in your primary residence. This loan can be secured by a first or second mortgage on your primary residence within the Bay Bank lending area.

Features of our HELOC program include:

• Automatic payments from a Bay Bank checking account are available
• Checks for borrowers to withdraw funds as needed (amounts of $500 or more)
• Variable rate

 Home Refinancing

The Section 184 program has many options for refinancing your home mortgage. Here are the most common refinance scenarios:

• Refinance the existing balance of the current mortgage or combine a first and second mortgage. You can refinance your mortgage up to 97.75% of the value of your home. If you are an enrolled tribal member from a federally recognized tribe and you’re paying Private Mortgage Insurance (PMI), or if you took a first and second mortgage to purchase your home, this may be the loan for you!
• You include rehab/home improvements with the new mortgage. Whether you have a first mortgage, or if you own your home free and clear, you can fund home improvements into a fixed-rate mortgage loan. If your home is in need of updates, this may be the loan for you!
• You can borrow against the equity in the home to pay off other debts (credit cards, vehicle loans, etc.). HUD will allow you to borrow up to 85% of the value of the home to pay off other debts. If you are paying high-interest credit cards, have a low balance on your mortgage or own your home free and clear, this may be the loan for you!

Mortgage Application Checklist for Refinance

1. 2 Years of W-2 statements, 30 days of paystubs, 2 years of federal tax returns, Award/Benefit Letter for Social Security/Disability Income and Child Support Documentation, if applicable.
2. Bank statements with bank’s name, address, account numbers and balances for the past 2 months.
3. Copy of current mortgage statement.
4. Copy of homeowner’s insurance policy.
5. 401(k) statements.
6. Valid ID.
7. Complete and signed Residential Mortgage Application.
8. Letter of explanation of derogatory credit (if applicable).

 Conventional Mortgage

We offer fixed-rate mortgage options of 15, 20 or 30 years for a home purchase, refinancing, or debt consolidation. The fixed-rate loans are fully amortized with a constant interest rate, and monthly principal and interest payment.

A 15-year mortgage may be right if you are looking for a lower interest rate and planning to pay off your home faster. A 30-year loan may be right if you are looking for a lower payment and planning to stay in your home for at least five to seven years.

A fixed-rate mortgage with Bay Bank is subject to your credit score and equity in your home.

Today’s Rates 

Investment Property Loan

We offer investment property loans for one to four units. Our mortgage lenders can discuss rates and terms.

Second Mortgage

Are you looking to buy a vehicle, make home improvements or consolidate debts? A second mortgage may be of help if you are a homeowner.

For eligible borrowers, we offer a second mortgage on your primary residence within the Bay Bank lending area. This loan is secured by a primary residence and subject to the equity in the residence. Fixed and variable terms and rates are available.

Down Payment Plus Grant

We partner with the Federal Home Loan Bank of Chicago to assist potential homebuyers with grants for a down payment. The grant amounts vary annually. Prospective homebuyers must contribute a minimum of $1,000 toward the purchase of a home and take a homebuyer education course with a certified housing counseling agency.