Section 184 Indian Home Loan Guarantee Program
The Home Improvement Loan program is a financing program that was designed by U.S. Department of Housing and Urban Development for American Indian and Alaska Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities. Section 184 loans can be used, both on and off native lands, for new construction, rehabilitation, purchase of an existing home, or refinance.
Because of the unique status of Indian lands being held in Trust, Native American homeownership has historically been an underserved market. Working with an expanding network of private sector and tribal partners, the Section 184 Program endeavors to increase access to capital for Native Americans and provide private funding opportunities for tribal housing agencies with the Section 184 Program.
General Program Requirements
In order to qualify for this benefit program, you must be Native American/American Indian, need aid in obtaining decent, safe, and/or sanitary rental housing, and characterize your financial situation as low income or very low income. Additionally:
- Owner occupied property only
- Must be a member of a federally recognized tribe.
- 2.250% minimum down payment is required and can be gifted or from a down payment assistance. (Call your Tribal office to see if they have a program available)
Eligible borrowers may use the guarantee program for the:
- Acquisition of existing housing
- Rehabilitation of existing housing
- Acquisition and rehabilitation of existing housing
- Construction of new housing unit/s
- Refinance
Advantages of Section 184 Home Loan
There are many advantages to using a Section 184:
- Low Down Payment: 2.25% on loans over $50,000 and only 1.25% on loans under $50,000
- Low Interest Rates: based on market rates, not on applicant's Credit Scores
- A Huge List Of National Network of Approved Lenders: Our network of approved lenders includes national companies and local banks to suit your needs. Our Lenders have also been trained on the unique circumstances of Native home ownership.
- No monthly mortgage insurance.
- Our Program monitors the fees our approved lenders can charge Native borrowers. Section 184 loans cannot be used for Adjustable Rate Mortgages (ARMs).
- Our staff understands the unique circumstances associated with lending on Native Lands and we work with borrowers to achieve home ownership and to avoid default and foreclosure.
