Mortgage giant Freddie Mac is working to increase housing finance options for Native Americans.
The government-backed company and the Federal Home Loan Bank of Des Moines announced a partnership to raise awareness of Freddie's HeritageOne mortgage designed for members of federally recognized Native American tribes living in tribal areas.
The National Low Income Housing Coalition has pushed Congress to increase funding to build and preserve affordable housing for Native Americans, citing poverty, low incomes and overcrowding. Federal investments in affordable housing on tribal lands have been "chronically underfunded for decades, particularly in more rural and remote areas," according to the nonprofit trade group.
HeritageOne provides financial counseling and other resources to members of Native American tribes, including first-time homebuyers, Freddie Mac said in a statement.
"Freddie Mac and FHLB Des Moines can be impactful partners in attracting capital to support Native American homeownership," said Sonu Mittal, Freddie's senior vice president and head of single-family acquisitions, in the statement. “We are aligned in mission and purpose and have tools that can help deliver more affordable mortgage options in tribal lands and rural areas to safely and responsibly expand opportunities to homeownership."
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HeritageOne borrowers have access to conventional financing for multiple types of land ownership interests and for homes located within eligible Native American tribes' tribal areas, according to the companies. To qualify, at least one borrower in the household must be an enrolled member of a federally recognized Native American tribe who will occupy the home as a primary residence.
FHLB Des Moines' member institutions can leverage HeritageOne to "create pathways of opportunity for informed and sustainable homeownership for tribal members," FHLB Des Moines CEO Kris Williams said in the statement.
FHLB Des Moines is one of 11 U.S. institutions making up the Federal Home Loan Bank System. Members include community and commercial banks, credit unions, insurance companies, thrifts and community development financial institutions.