HUD 184 – Native American Home Loans

What is a HUD 184 Home Loan Progam?

The Section 184 Loan Guarantee Program was established by the Housing and Community Development Act of 1992 to make it simpler for Native Americans who reside on reservations to get a mortgage. Borrowers can purchase a property with a low down payment and flexible underwriting thanks to section 184 financing. On and off native grounds, section 184 loans can be used for new construction, renovation, buying an existing home, or refinancing.

The HUD-184 loan has some of the lowest down payment requirements on the market. For loans of $50,000 or more, a 2.25 percent down payment is required, while a 1.25 percent down payment is required for loans of less than $50,000. A one-time guarantee fee of 1.5 percent is also paid to the government. This cash could originate from your savings, investments, or family gifts. Additionally, tribal assistance is accepted.

Qualification Requirements for HUD Section 184 Loan

You must be an Alaskan or Native American tribal member to qualify for a Section 184 loan. The tribal authority decides who is accepted into the tribe and frequently provides a card or letter to prove it. It will be necessary to provide documentation of tribal membership when applying for a Section 184 loan. It is up to the participating Tribes to decide whether Section 184 eligibility applies to specific counties or the entire state.

The HUD-184 mortgage loan program requires no minimum credit score. It is the ideal solution for qualified individuals with marginal credit. Unlike most mortgage programs, marginal credit borrowers are not subject to higher interest rates.

How HUD Section 184 Home Loan Program Works

The Office of Loan Guarantee, a section of HUD’s Office of Native American Programs, insures the Section 184 home mortgage loans given to Native borrowers. The loan program guarantees the lender that its investment will be repaid entirely in the event of a foreclosure.

Each county sets its borrowing restrictions for HUD Section 184. Here are the most recent loan limit figures. Members of federally recognized tribes that are American Indians or Alaska Natives are eligible for the loan. This year’s complete list of Indian tribes with federal recognition is available here.

The Borrower shall consult with the Tribe and the Bureau of Indian Affairs regarding its request for a Section 184 loan from a participating lender and its lease of tribal territory. After carefully reviewing the necessary loan documents, the lender submits the loan for approval to HUD’s Office of Loan Guarantee.

Apply for HUD Section 184 Home Loan

Capital Home Mortgage can assist you if you are a member of a Native American tribe and feel you may be qualified for a Section 184 loan.

We provide complimentary consultations, answer any questions you may have concerning Section 184 mortgages, and explain all available mortgage options. Call us at 800-536-8171 to speak with a Native American home loan team member!