Section 184 Indian Home Loan Guarantee Program

Effective December 1, 2016 the new annual premium of 0.25 percent of the remaining loan balance will apply to all new loan guarantees, including refinances. Read the full Federal Register Notice HERE. Frequently Asked Questions HERE. The revised Section 184 MCAW (Amortization and fee schedule tab has been changed to reflect the annual fee of .0025).

A November 15, 2016 memo notifies lenders of changes to PIH Notice 2014-22 that impact Section 184 loans. The amendment is effective for all Section 184 Case Numbers issued on or after December 1, 2016.

FHA Mortgagee Letter 2016-08, effective June 30, 2016 provides the FHA guidance regarding documentation requirements and the standard for calculating monthly obligations for all student loans, regardless of payment type or status of payments. The FHA policy applies to Section 184 Loans.

Program Overview

The Section 184 Indian Home Loan Guarantee Program is a home mortgage product specifically designed for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership and increase access to capital in Native American Communities.

With Section 184 financing borrowers can get into a home with a low down payment and flexible underwriting. Section 184 loans can be used, both on and off native lands, for new construction, rehabilitation, purchase of an existing home, or refinance.

Section 184 is synonymous with home ownership in Indian Country.

As of March 31, 2016, the Section 184 program has guaranteed over 33,000 loans, representing over $5.4 billion dollars in increased capital into Native American Communities.

How Section 184 Works

The Office of Loan Guarantee within HUD’s Office of Native American Programs, guarantees the Section 184 home mortgage loans made to Native borrowers. The loan guarantee assures the lender that its investment will be repaid in full in the event of foreclosure.

The borrower applies for the Section 184 loan with a participating lender, and works with the tribe and Bureau of Indian Affairs if leasing tribal land. The lender then evaluates the necessary loan documentation and submits the loan for approval to HUD’s Office of Loan Guarantee.

The loan in limited to single-family housing (1-4 units), and fixed-rate loans for 30 years of less. Neither adjustable rate mortgages (ARMs) nor commercial buildings are eligible for Section 184 loans. Maximum loan limits vary by county. Click on the link below for the most current loan limits.

Section 184 - Maximum loan limit by county Revised (Effective June 1, 2016)

By encouraging lenders to serve Native communities, Section 184 is increasing the marketability and value of the Native assets and strengthening the financial standing of Native communities.

Eligible Borrowers

American Indians or Alaska Natives who are members of a federally recognized tribe
Federally recognized Indian tribes (Complete List)
Tribally designated housing entities
Indian Housing Authorities

Native Hawaiians can access homeownership loans through the Section 184A Program.

Eligible Areas

Loans must be made in an eligible area. The program has grown to include eligible areas beyond tribal trust land. Click on the links below to determined participating States and counties across the country.

Section 184 Approved Counties by State

Lender Participation

Borrowers must apply with a HUD-approved Section 184 lender. Approved lenders are listed below.

Resources

Additional homebuyer resources, including homebuyer classes, can be found at www.hud.gov/counseling.

Section 184 Brochure (May 2011)
Promoting Tribal Economies Through Homeownership Brochure
BIA Contract Guide for Mortgage Lending (9/2016)