HUD - Section 184 - Indian Home Loan Guarantee Program

What is the Section 184 Loan Guarantee Program?

The Section 184 Indian Home Loan Guarantee Program is a mortgage product specifically for American Indian and Alaska Native families, tribes, Alaska Villages, or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership in Native American communities.

With a Section 184 mortgage, borrowers can purchase a home with a low down payment, no monthly mortgage insurance and flexible underwriting.

• 2.25% down payment requirement for loans over $50,000
• 1.25% down payment requirement for loan under $50,000
• No monthly mortgage insurance
• A one-time, 1% loan guarantee fee that can be added to your financed loan

What types of loan options are available under Section 184?

• Purchase of an existing home
• Construction of a home (stick-built or a manufactured home on a permanent foundation)
• Rehab loans
• Purchase and rehab
• Refinancing (Rate and Term, Streamline, Cash Out)

How Does Section 184 Work?

HUD guarantees the mortgage loan made to eligible borrowers. The loan guarantee assures the lender that its investment will be repaid in the event of a foreclosure. The borrower pays a 1% loan guarantee fee at closing which may be financed in the mortgage or paid in cash. The borrower applies for the loan with a participating lender. If leasing tribal land, they work with the tribe and the Bureau of Indian Affairs to obtain an approved 50-year lease. The lender then evaluates the necessary loan documentation and submits the loan for approval to the HUD Office of Loan Guarantee.

Who is Eligible for a Section 184 Loan?

• American Indians or Alaska Natives who are enrolled members of a federally recognized tribe
• A member of an Alaska Village and Regional Corporation established pursuant to the Alaska Native Claims Settlement Act
• An Indian tribe
• A Tribally Designated Housing Entity (TDHE)
• An Indian Housing Authority (IHA)

How do I get started?

To apply for a section 184 loan, you must contact a HUD-Approved Section 184 lender. Alaska USA is a HUD-Approved Section 184 lender. Once you have met with an Alaska USA Mortgage Company loan originator and reviewed the variety of loan options, you can move forward and get prequalified. Your loan originator will review your credit report and explain how your credit affects your purchasing power.

Your loan originator will give you a list of documents that you need to bring in to be reviewed by local underwriters. Common documents requested are:

• Pay stubs for the most recent 30 days
• Complete bank statements for the last two months
• Most recent investment information, such as IRA or 401(K) statements
• Most recent two years tax returns with all supporting documentation such as W-2 forms

Alaska USA may ask for additional items that are required based on the specific loan that you choose based on your financial status or situation.

Don't forget, the choice is yours when it comes to selecting the title and escrow agency, acting as the neutral party for you and the seller.