Program Overview
Homeownership for Native Americans
In 1992, Congress established the Section 184 Indian Home Loan Program. The program 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.
Why a Loan Program Specific to Native Americans
With the unique status of Indian lands, Native American homeownership is an underserved market. The Section 184 Program was specifically designed to ensure capital access for Native Americans, providing private funding opportunities for tribal housing agencies.
How Does Section 184 Work?
In a nut shell, HUD guarantees the mortgage loan made to eligible borrowers. That loan guarantee gives the lender assurance that its investment will be repaid in the event of a foreclosure. The borrower pays a 1% loan guarantee fee at closing. The borrow elects to roll the into the mortgage or pay in cash. The borrower applies for the loan. Ifthe property is leased 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?