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For Tribes and TDHEs

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For Borrowers For Tribes and TDHEs For Lenders

 

What's New

  • Dear Tribal Leader Letter- Section 184 Indian Housing Loan Guarantee Program – Final Rule Published in the Federal Register

    On March 20, 2024, the U.S. Department of Housing and Urban Development (HUD) published the final rule on the Section 184 Indian Housing Loan Guarantee (Section 184) program in the Federal Register. A link to the final rule is here. The final rule expands and revises the Section 184 program regulations to address the program’s growing demands, increase transparency and accountability, and strengthen the program to ensure that it remains viable for many years to come.

  • Dear Lender Letter 2024-03- Native Advantage – release of the Loan Origination Module and Changes to the Business Process Related to the Release

The purpose of this Dear Lender Letter (DLL) is to inform Lenders participating in the Section 184 Indian Housing Loan Guarantee (Section 184) program and the Section 184A Native Hawaiian Housing Loan Guarantee (Section 184A) program of the upcoming release of the second component of Native Advantage, the Loan Origination Module, and changes to the Office of Native American Programs (ONAP) business process related to this release.

This Dear Lender Letter (DLL) extends the initial appraisal and appraisal update validity periods for Section 184 and Section 184A loans.

The purpose of this Dear Lender Letter (DLL) is to update the maximum loan limits for the Section 184 Indian Home Loan Guarantee (Section 184) program and Section 184A Native Hawaiian Housing Loan Guarantee (Section 184A) program.

  • Federal Register Notice- Section 184 Indian Housing Loan Guarantee Program Reduction to the Upfront and Annual Loan Guarantee Fees

This Notice reduces the Section 184 program upfront loan guarantee fee from 1.50 to 1.00 percent and the annual loan guarantee fee from 0.25 to 0.00 percent. This reduction will apply to all Section 184 program applicants receiving a new or updated Section 184 Firm Commitment as of the applicable date of this Notice, including refinances. This reduction will not apply to loans currently guaranteed by this program.


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.

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.

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
  • 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.

Map of States Approved for Section 184 Loan Guarantee Program

Lender Participation

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

Section 184 Participating Tribes

Resources

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