is the Section 184 Loan Guarantee Program?
The Section 184 Loan Guarantee Program was designed to increase
lending to Native American and Alaskan Native communities that were
traditionally underserved by financial institutions. The Section
184 mortgage loans are guaranteed 100% by the Office of Loan Guarantee
within HUD's Office of Native American Programs. This guarantee
encourages national and local lenders to extend financing to Native
Americans and increases the marketability of their current assets
and future investments.
Our staff works with a wide network of Tribal and Private Sector
partners to increase Native access to financing and their ability
to leverage this financing and current assets to strengthen their
community's financial standing. In conjunction with our Title
VI Leverage Finance instrument, The Office of Loan Guarantee's
Section 184 Loan Guarantee Program continues to successfully expand
financing opportunities to Native Communities.
Why Should a Tribe Promote Section 184 Loans
to our members?
The success of the Section 184 Loan Program has significantly improved
how Native investments are valued by financial institutions. The
Office of Loan Guarantee (OLG) has paved the way for 184 approved
lenders to market directly to Native Communities and extend greater
financing opportunities to Tribal members.
There are many advantages to using a Section 184:
- 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 applicants
- Flexible Underwriting: Our underwriters understand the
unique issues and circumstances that Native Americans face when
trying to obtain a mortgage in Indian Country.
- Growing National Network of Approved Lenders: Our network
of approved lenders includes both large national companies and
local banks to suit your needs. Our Lenders have also been trained
on the unique circumstances of Native homeownership.
- No monthly mortgage insurance: a one-time up front 1%
guarantee fee is paid at closing and can be financed into the
- Protection from predatory lending: Our program reviews
fees our approved lenders charge to ensure the amounts are reasonable
and comply with the program standards. Section 184 loans cannot
be used for Adjustable Rate Mortgages (ARMs).
- Low Risk: Despite the economic downturn, lenders have
not reduced their activity in the Section 184 loan market as they
have in other markets since our loans are guaranteed 100%.
- Knowledgeable Staff: Our staff understands the unique
circumstances associated with lending on Native Lands and work
with borrowers to avoid default and foreclosure.
Participating Tribes and Eligible Areas
The Section 184 Loan is synonymous with home ownership in Indian
Country. As of 2010, the Section 184 program has guaranteed over
12,000 loans (almost $2 billion dollars in guaranteed funds).
Participating Tribes determine the areas where the Section 184
loan can be used.
How Can a Tribe Participate in the HUD 184 Loan
A Tribe interested in participating must have the following as
part of their Tribal Laws:
- Tribal Court Jurisdiction over Real Property
- Defined Eligible Area (usually the Tribal formula area)
- Foreclosure Procedures
- Eviction Procedures
- Leasing Procedures
- Tribal Trust and/or Allotted Trust Land
- Provision showing HUD 184 Guaranteed Loan as first lien priority.
- Provision granting HUD and/or private lenders access to tribal
lands for the purpose of servicing guaranteed properties.
- Acknowledgement that should eviction and foreclosure procedures
not be enforced, the Office of Loan Guarantee will cease making
new loan guarantees within the tribe's area of jurisdiction
A copy of the ordinances, procedures, proposed lease(s) and tribal
resolutions enacting these above items should be mailed to:
Office of Loan Guarantee, Attn: Director
National Office of Native American Programs
US Department of Housing and Urban Development
471 7th Street SW, Room 5143
Washington, D.C. 20410
For assistance in preparing to become a participating tribe, contact
Halloran in the Office of Loan Guarantee in Denver, Colorado
How Can a Tribe Learn more about Promoting Section
The Office of Loan Guarantee offers training to help Tribes, TDHEs,
IHAs, and CDFIs to assist their members in securing Section 184
Using Section 184 for Community Development
Tribes and TDHEs can use Section 184 Loans to develop rental housing
or to build single-family homes that are subsequently sold (or assumed)
by eligible borrowers.
The Section 184 Loan can be used for:
- Acquisition of existing housing
- Rehabilitation of existing housing
- Construction of new housing, including manufactured housing
affixed to a permanent foundation
- Refinancing, including rate and term, streamline, cash out
Section 184 Loans are to be used only for single-family housing
(1-4 units), and can only be fixed-rate loans for 30 years or less.
Section 184 cannot be used for commercial structures or with Adjustable
Rate Mortgages (ARMs). For Tribes interested in Commercial Financing
see our Title VI Program.
Find an Approved Section 184 Lender
Once you are ready to apply for a Section 184 loan, contact one
of our approved lenders. All of our approved lenders have undergone
training on the unique circumstances of Native Homeownership.
What Can a Tribe Do To Assist Tribal Members
in Becoming Home Owners?
To support their members in becoming home owners, many Tribes offer:
- Infrastructure Development: Providing roads, water and
sewer, electricity or Internet cabling, or gift monies toward
- Down Payment Assistance: This could be in the form
of a soft second, IDP, or Gift funds
- Home Buyer Counseling: Offer classes on financial
literacy, saving & investing, and house maintenance to better
prepare tribal members for home ownership
- Surveying: Surveying tribal lands
- Leasehold Recording: The Tribe leases land to the
Tribal member for homeownership
- Planned Development Design: Developing architectural
and housing development plans to provide scaled and unified
growth on Trust lands
- Green Building Incentives: Offering financial incentives
for green house design and weatherization
If you already have a Section 184 Loan, click here for 2010
HUD 184 Policy/Mortgagee Letters.
Are you a Borrower? View Borrower Resources.
Are you a Lender or CDFI? View Lender Resources.