Mortgage Process

The Minnesota Chippewa Tribe’s Home Loan Program provides financing to members of the Minnesota Chippewa Tribe. We offer a range of loan services, including home loans, renovation loans, construction loans, and modification loans.

When applying for financing, there are four key factors that lenders evaluate to determine your qualification—these are known as the “Four C’s”:

1. Capacity (Your Income) – Can you afford the loan? Lenders assess your ability to make payments based on your income.
2. Cash (Your Down Payment) – How much cash do you have for a down payment? This shows your investment in the property.
3. Character (Your Credit) – What does your credit history say about your reliability in paying debts?
4. Collateral (The Property) – Is the property valuable enough to secure the loan?

Your financial situation and credit history will determine your ability and willingness to repay the loan, while the property serves as collateral to back the loan.

Income Requirements

Lenders evaluate each borrower’s income to ensure it will continue for at least the first three years of the mortgage. Here’s how they assess your ability to afford the loan:

• Total Debt Limit: Your new house payment, plus any other monthly debt, should not exceed 40% of your gross monthly income.
• House Payment Limit: Your proposed house payment should total no more than 27% of your gross monthly (pre-tax) income.

Required Documents for Loan Application

To process your loan application, you’ll need to provide the following information:

• Names and addresses of landlords for the past 3 years
• Names and addresses of employers, along with employment dates, for the past 3 years for everyone in the household
• Two months of recent pay stubs
• Signed tax returns for the past 2 years, including W-2 forms
• Copy of your driver’s license or photo ID
• Copy of your social security card
• Proof of enrollment in the Minnesota Chippewa Tribe
• Other sources of income (e.g., social security, retirement benefits, per capita income)
• A list of all liabilities and assets
• Two months of recent bank statements (checking and savings accounts)
• First-Time Homebuyer Certificate: A certificate is required and must be valid within six (6) months of closing. You can take the Homestretch class at www.hocmn.org or attend one of the four (4) classes provided by MCTFC each year—two in the spring and two in the fall. Check our website for dates or contact our office for more details.

Make sure to download the full checklist here: Minnesota Chippewa Tribe Finance Corporation Application Checklist

Buying Property

Once you’ve selected a home, the lender will conduct an appraisal to determine its value and ensure it meets MCTFC’s minimum specifications. The property must meet or exceed the loan amount because the home serves as the lender’s security.

Closing

We’ll get in touch to schedule a date and time and also let you know what the final amount due is.

What Can Delay or Prevent Closing

• Significant financial changes made after applying can cause major delays, and even prevent closing. To ensure that everything goes smoothly, please check with your mortgage loan officer before doing any of the following:
• Taking on new debt (loans or credit cards)
• Making large purchases
• Making large deposits (tax refunds, bonuses, substantial transfers, etc.)
• Change in marital status