Section 184 Native American Home Loan
Bringing the Dream of Home Ownership to Indian Country
What is the Section 184 Loan Guarantee program?
The Section 184 Indian Home Loan 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 home ownership in Native American communities. With Section 184 financing, you can get into a home with a low down payment, no mortgage insurance and flexible underwriting.
If you are a potential home buyer, 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 are familiar with the unique issues and circumstances that Native Americans face when trying to get a mortgage in Indian Country.
Basics of the Program
- Home ownership for Native Americans: In 1992, Congress established the Section 184 Indian Home Loan Program. The program was designed to offer home ownership 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.
Why a Loan Program Specific to Native Americans?
Because of the unique status of Indian lands, Native American home ownership is an under-served 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 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 at closing, which may be financed in the mortgage or paid in cash. The borrower applies for the loan with a participating lender, or works with the tribe and the Bureau of Indian Affairs if leasing tribal land. The lender then evaluates the necessary loan documentation and submits the loan for approval to the HUD Office of Loan Guarantee.
Who is Eligible for a Section 184 Loan?
- American Indians or Alaska Natives who are members of a federally recognized tribe
- 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
Eligibility is limited to single-family housing (1-4 units), and fixed-rate loans for 30 years or less. Neither adjustable rate mortgages (ARMS) nor commercial buildings are eligible for Section 184 Loans. 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. This makes the Section 184 loan a unique leveraging tool for expanding the Tribal housing stock to meet the needs of your Tribal membership.
Office of Native American Programs U.S. Department of Housing and Urban Development
451 7th St SW, Room # 5143
* For a printable brochure including this information, please click here: