Native American Loans – Section 184 Loan Program

The section 184 Loan Guarantee Program was designed to help Native American Indians and Alaska Native families obtain financing to purchase homes in Native American communities. Native American borrowers that qualify for the section 184 mortgage can purchase a home with a low down payment, no monthly mortgage insurance and flexible underwriting.

Some of the benefits of the obtaining a mortgage through the 184 loan program are:

– 2.25% down payment requirement for loans over $50,000.

– 1.25% down payment requirement for loans under $50,000.

– No Monthly mortgage insurance.

– A one-time, 1% loan guarantee fee that can be added to your financed loan.

– HUD underwriters are familiar with the unique situations and circumstances involved when obtaining financing on American Indian land.

There are numerous options for loans available through the Section 184 Program. Borrowers can:

– Purchase an existing home.

– Construct a new home (stick-built or a manufactured home on permanent foundation).

– Rehabilitate a home.

– Purchase and rehabilitate a home.

– Refinance an existing mortgage (Rate and Term, Streamline, Cash-Out).

The 184 Loan Program is specific to Native Americans because of the unique situation and circumstances that borrowers can experience when trying to obtain financing on Indian land. Due to these unique situations, homeownership is an underserved market and is difficult achieve for people living on Indian land. The Section 184 Program improves access to capital for Native Americans and provides private funding opportunities for tribal housing agencies. To be eligible for the 184 loan program you must be:

– an American Indian that is an enrolled member of a federally recognized tribe.

– an Alaskan Native that is an enrolled member of a federally recognized tribe.

– a member of a Alaskan Village and Regional Corporation established pursuant to the Alaska Native Claims Settlement Act.

– an Indian tribe.

– an Indian Housing Authority.

To apply for 184 loan you must be eligible based on HUD program guidelines. Most approved lenders can provide more specific information about the program. Contact an approved 184 loan program lender to begin the process.

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