Indian Home Loan Guarantee Program (Section 184)

What is the Section 184 Loan Guarantee Program?

With a Section 184 mortgage borrowers can purchase a home with a low down payment, no monthly mortgage insurance and flexible underwriting.

• 2.25% down payment requirement for loans over $50,000;
• 1.25% downpayment requirement for loan under $50,000;
• No monthly mortgage insurance
• A one-time, 1% loan guarantee fee that can be added to your financed loan
• HUD underwriters and Loan Guarantee Specialists are familiar with the unique issues and circumstances that Native Americans face when trying to obtain a mortgage in Indian Country.

The Section 184 Loan Provides You With Numerous Options to Suit Your Needs

• Purchase of an existing home
• Construction of a home (stick-built or a manufactured home on a permanent foundation)
• Rehab loans
• Purchase and rehab
• Refinancing (Rate and Term, Streamline, Cash Out)
  

Getting Started

To qualify for a home loan, its recommended (but it's not mandatory) that applicants first find out if there are homebuyer education classes available through their tribe, housing department and/or in their community.

Homebuyer classes prepare you for the home buying process, so that when you meet with a lender you'll have a better understanding of what it takes to qualify for a home loan.

Homebuyer Counseling Resources

Meeting with a Lender

To apply for a 184 loan, you must contact a HUD-Approved Section 184 lender. Download the Section 184 participating lenders list.

Program Overview

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.

How Does Section 184 Work?
HUD guarantees the 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. If leasing tribal land they work with the tribe and the Bureau of Indian Affairs to obtain an approved 50 year lease. The lender then evaluates the necessary loan documentation and submits the loan for approval to the HUD Office of Loan Guarantee. Frequently Asked Questions?

Who is Eligible for a Section 184 Loan?

• American Indians or Alaska Natives who are enrolled members of a federally recognized tribe
• A member of an Alaska Village and Regional Corporation established pursuant to the Alaska Native Claims Settlement Act
• An Indian tribe
• A Tribally Designated Housing Entity (TDHE)
• An Indian Housing Authority (IHA)

How Can You Use the Section 184 Loan Guarantee?

Individuals, tribes, TDHEs and IHAs can use the Section 184 Loan for:

• Acquisition and/or rehabilitation of existing housing
• Construction of new housing, including manufactured housing affixed to a permanent foundation
• Refinancing
  
  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.

Lender Participation

• Approved 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
• Approved by the Department of Agriculture to make loans for single-family housing
• Supervised, 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.

Are Guaranteed Loans Marketable?

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.