What is a Section 184 loan?

This program was designed to provide access to mortgage financing to Native Americans. Section 184 home loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s Office of Native American Programs. This guarantee encourages national and local banks to provide mortgage loans to Native Americans. The Office of Loan Guarantee works with a national network of lenders to increase Native access to home financing and to improve the value of Native investments.

Features of the program:

  • 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
  • Manual Underwriting: The Program utilizes a hands-on approach to underwriting and approval opposed to automated decision-making tools.
  • Growing National Network of Approved Lenders: The network of approved lenders includes national companies and local banks to suit your needs. The Lenders have also been trained on the unique circumstances of Native homeownership.
  • No monthly mortgage insurance: a one-time 1% up front guarantee fee is paid at closing and can be financed into the loan.
  • Protection from predatory lending: The Program monitors the fees our approved lenders can charge Native borrowers. Section 184 loans cannot be used for Adjustable Rate Mortgages (ARMs).
  • Knowledgeable Staff: The staff understands the unique circumstances associated with lending on Native Lands and work with borrowers to achieve home ownership and to avoid default and foreclosure

What Can I use the Section 184 Loan for?

  • Purchase an Existing Home
  • Construct a New Home (Site-Built or Manufactured Homes on permanent foundations)
  • Rehabilitate a Home, including weatherization
  • Purchase and Rehabilitate a Home
  • Refinance a Home to get a more favorable rate or pull cash out

Section 184 loans can only be used for single family homes (1-4 units) and for a primary residence. Since 184 strives to increase homeownership to all Native Communities, the guaranteed funds are reserved for primary residences rather than second or investment properties.

How do I know if I qualify?

  • Only enrolled members of a federally recognized tribe are eligible.
  • Only some western states are 100% eligible to use the program: OR, MT, ID, ND, SD and AK.  In Wyoming and Nebraska it is a county by county eligibility.

Where do I go to find out more?

  • Go to hud.gov and type in 184 in the search field.
  • Call a lender who has trained staff and who has qualified to coordinate these programs. You can get a list off the HUD website, but I learned about the program through Wells Fargo Bank.

Dave Carney, Broker – Realtor 1.360.259.4027


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