is the Section 184 Loan Guarantee Program?
184 Indian Home Loan Guarantee Program is a mortgage product specifically
for American Indian and Alaska Native families, tribes, Alaska Villages or tribally
designated housing entities. Congress established this program in 1992 to facilitate
homeownership in Native American communities. See HUD's website for a list of
With Section 184 financing you can get into a home
with a low down payment, no mortgage insurance and flexible underwriting.
you are a potential homebuyer, Section 184 is a great product - thanks to the
low down payment requirement of 2.25% for loans over $50,000. If your loan amount
is under $50,000 your down payment is 1.25%. Also, you don't have to pay a mortgage
insurance premium each month. Instead, a one-time, 1% loan guarantee fee can be
added to your final loan amount. Our underwriters and
Loan Guarantee Specialists are familiar with the unique
issues and circumstances that Native Americans face when trying to get a mortgage
in Indian Country.
The Section 184 Loan Provides You With
Numerous Options to Suit Your Needs
- Purchase of an existing home
construction loans for a stick-built or a manufactured home on a permanent foundation
- Purchase and rehab
- Benefits of the Section 184 Loan Guarantee
Benefits of the Section 184 Loan Guarantee
For instance, if you've outgrown your current home and are
looking to add on an additional room or make improvements, Section 184 financing
gives you the option of paying off your old loan and combining it with a rehab
loan. The key point to remember is that this is a loan product.
To qualify for a home loan, we recommend (but it's not mandatory)
that you first find out if there are any homebuyer education classes that you
Homebuyer classes prepare you for the home buying process,
so that when you go in to meet with a lender you'll have a better understanding
of what it takes to qualify for a home loan.
Meeting with a Lender
get a loan, you must apply with a HUD-Approved Section 184 lender. Download
the Section 184 participating lenders list. If you are a lender that wants
to be qualified to participate?
Homeownership for Native Americans
In 1992, Congress
established the Section 184 Indian Home Loan Program. The program was designed
to offer homeownership and housing rehabilitation opportunities for eligible Native
American individuals, families, tribes and tribally designated housing entities
(including Indian Housing Authorities) on their native lands and within an approved
Indian area. Loans across the nation.
Why a Loan Program Specific to Native Americans?
Because of the unique
status of Indian lands, Native American homeownership is an underserved market.
The Section 184 program was designed to improve access to capital for Native Americans
and provide private funding opportunities for tribal housing agencies.
Does Section 184 Work?
HUD guarantees each mortgage loan made to eligible
borrowers. The loan guarantee assures the lender that its investment will be repaid
in the event of a foreclosure. The borrower pays a 1% loan guarantee fee at closing,
which may be financed in the mortgage or paid in cash. The borrower applies for
the loan with a participating lender, or if leasing tribal land they work with
the tribe and the Bureau of Indian Affairs. The lender then evaluates the necessary
loan documentation and submits the loan for approval to the HUD Office of Loan
Guarantee (located in Washington, DC and Denver, CO). Frequently
Who is Eligible for a Section 184 Loan?
- American Indians or Alaska Natives who are members of a federally recognized
- A member of an Alaska Village and Regional Corporation established
pursuant to the Alaska Native Claims Settlement Act
- An Indian tribe
Tribally Designated Housing Entity (TDHE)
- An Indian Housing Authority
How Can You Use the Section 184 Loan Guarantee?
tribes, TDHEs and IHAs can use the Section 184 Loan for:
and/or rehabilitation of existing housing
- Construction of new housing,
including manufactured housing affixed to a permanent foundation
Eligibility is limited to single-family housing (1-4 units), and fixed-rate
loans for 30 years or less. Section 184 cannot be used for commercial structures
or with Adjustable Rate Mortgages (ARMs). Tribes, TDHEs or IHAs can borrow funds
to develop rental housing or to build single-family homes that are subsequently
sold (or assumed) by eligible borrowers.
How Can Lenders Participate?
Loans are originated
and serviced by lenders that have completed Section 184 training and are:
by HUD/ONAP to originate Section 184 loans
- Approved by HUD/FHA for participation
in the single-family mortgage insurance program
- Authorized by the Veterans
Administration (VA) to originate automatically guaranteed housing loans
by the Department of Agriculture to make loans for single-family housing
approved, regulated or insured by any agency of the federal government Tribal
loan funds, credit unions, and CDFIs are encouraged to apply to be Section 184-approved
lenders based on past lending experience.
Yes! A Section 184 guaranteed loan, including
the security given for the loan, may be sold or assigned by the lender to any
financial institution. However, it is subject to examination and supervision by
an agency of the federal government or of any state.
A strong secondary
market exists for Section 184 loans. Fannie Mae, Freddie Mac, Ginnie Mae, some
state housing financing agencies, and some federal home loan banks can purchase
Section 184 loans.
For program staff information contact HUD.
|Contact the Office of Loan Guarantee Clearinghouse by phone or fax.
Phone: 1-800-561-5913 | Fax: 1-303-675-1671