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Banking industry

Choctaw Nation Expands Homebuyers Advantage Program to Seven States

Strategic Insights

— 2 min read

The Choctaw Nation, in collaboration with Washington Mutual, Freddie Mac, First Americans Mortgage Corporation, and PMI Mortgage Insurance Co., has launched a seven-state expansion of the Choctaw Homebuyers Advantage Program (CHAP). This initiative allows members of the Choctaw Nation to purchase homes with low downpayment requirements and customized qualification criteria. The program, initially restricted to Oklahoma, has been expanded to include Arizona, Arkansas, California, New Mexico, Oregon, Texas, and Washington, with a budget increase from $10 million to $30 million.

Key Takeaways:

  • The Choctaw Homebuyers Advantage Program (CHAP) enables members of the Choctaw Nation to buy homes with as low as 1% downpayment and customized qualification requirements.
  • The program has been expanded to seven states: Arizona, Arkansas, California, New Mexico, Oregon, Texas, and Washington, from its initial restriction to Oklahoma.
  • The budget for the program has been increased from $10 million to $30 million.
  • Approximately $2 million worth of loans have been originated to date.
  • The Choctaw Nation is the third largest Native American tribe in the nation, with approximately 110,000 members.
  • Washington Mutual is a financial services company that provides a diversified line of products and services to consumers and small- to mid-sized businesses.
  • Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to create a continuous flow of funds to mortgage lenders in support of homeownership and rental housing.
  • First Americans Mortgage Corporation is a Native American lending and consulting company based in Overland Park, Kansas, responsible for initiating the CHAP program.
  • PMI Mortgage Insurance Co. is one of the largest private mortgage insurers in the United States, providing mortgage guaranty reinsurance in Hong Kong and mortgage insurance in Australia.
  • The program allows for borrowers to qualify for mortgages using non-traditional credit sources.
  • The program permits the rehabilitation of single-family properties, as well as the purchase of newly constructed homes.
  • A three-percent downpayment is standard, although a special one-percent downpayment option is available through the program.
  • The Choctaw Nation offers a revolving loan fund with a low interest rate to fund the remaining downpayment and closing costs.

Statistics:

  • The budget for the Choctaw Homebuyers Advantage Program has been increased from $10 million to $30 million.
  • Approximately $2 million worth of loans have been originated to date.
  • The Choctaw Nation has approximately 110,000 members.
  • Freddie Mac has supported one in six homebuyers in America.
  • First Americans Mortgage Corporation is a subsidiary of AmeriResource Technologies, Inc. (OTC Bulletin Board: ARET).
  • PMI Mortgage Insurance Co. is one of the largest private mortgage insurers in the United States.

Sources:

  • Choctaw Nation of Oklahoma press release, August 4, 2002.
  • Washington Mutual press release, August 4, 2002.
  • Freddie Mac press release, August 4, 2002.
  • First Americans Mortgage Corporation press release, August 4, 2002.
  • PMI Mortgage Insurance Co. press release, August 4, 2002.

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