HUD 184 PROGRAM  

History

The Indian Home Loan Guarantee Program (Section 184) is funded annually by Congress. The program is offered to Native Americans and provides homeownership opportunities throughout Indian Country in the United States. The program was developed specifically for Native Americans seeking homeownership opportunities on fee simple land in an Indian area, on Tribal Trust Land, or on individually allotted land on a reservation.

Program Staff

The Office of Native American Programs, Office of Loan Guarantee is located in Washington, DC and Denver, CO. Our mailing address is:

Office of Native American Programs
U.S. Department of Housing and Urban Development
451, 7th St SW
Washington DC
Phone: (202) 401-7914
FAX: (202) 401-7909

The 184 program staff is responsible for program development, monitoring and quality control, loan underwriting, program training, and marketing. In addition, the Loan Guarantee staff serve as a liaison between lenders, government agencies, tribal members, and other entities instrumental in making this program a success.

To help market the Section 184 Loan Guarantee Program, ONAP has organized a team of Section 184 Coordinators from regional ONAP staff. The regional coordinators are committed to helping Native American homebuyers and tribes to take advantage of new opportunities to own their own homes.

Southern Plains Region

Wayne Sims, the Administrator for the Southern Plains Region is serving as the Section 184 Coordinator for the Southern Plains Region. Wayne can be reached: (405) 609-8532 or FAX: (405) 609-8403, or e-mail: Wayne_Sims@hud.gov.

Benefits of the 184 Loan Guarantee Program

          Available on tribal trust, individual allotted trust or fee simple land in an Indian operating area

Low down payment of 1.25% to 2.25% based on the lower of the appraised value or cost to acquire the home

Refinance eligibility

The maximum loan is 150% of the FHA mortgage limit subject to appraised value and down payment requirements

1% finance able guarantee fee at closing (no private mortgage insurance or monthly (MIP). It is the lowest cost of any government guarantee or conventional insurance program in Indian country. There is no monthly premium for a 184 loan.

Eligibility includes: New construction, rehabilitation and purchase of an existing house

One qualifying ratio: 41% total debt to gross income ratio, which can be exceeded with compensating factors.

Single close construction (permanent) loan where only one closing is required. Monthly mortgage payments begin after closing. At closing the amount allocated for construction or rehabilitation plus a 5-10% contingency and up to 6 months mortgage payments are placed in an escrow account and are drawn down as the work is satisfactorily completed.

100% guarantee to the lender in the event of a foreclosure and claim.

A strong secondary market exists: Fannie Mae, Freddie Mac, FHLB of Seattle, Ginnie Mae and some state housing finance agencies.

Loans may be assumed by a creditworthy borrower that meets program eligibility.