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Why Choose Section 184?

For American Indian and Alaska Native families looking for their next home, we have home buying assistance offered in-house.

The Section 184 Indian Home Loan Program, designed by the US Department of Housing and Urban Development (HUD) to promote homeownership, can get you into a home with a low down payment, low interest rate, no mortgage insurance, and flexible underwriting. Even with less-than-perfect credit, this HUD loan program can be easier to qualify for than conventional home loans. It's a great way to purchase or refinance a home.

What Is It?

Our loan officers and underwriters are familiar with the unique issues and circumstances that Native American families face when trying to get a mortgage. Because of the unique status of Indian tribes, Native American homeownership is an underserved market. In reaction to this, Congress passed Section 184 to offer homeownership and housing rehabilitation for eligible Native American individuals within an approved state.

What Makes It Great?

Here are the most attractive features:

  • Low down payment requirement of 2.25% for loans over $50,000. If your loan amount is under $50,000, your down payment is 1.25%.
  • Fixed rates for 30 years or less.
  • Low interest rates based on the market, not the applicant’s credit score.
  • No mortgage insurance premium each month; instead, a one-time, 1% loan guarantee fee can be added to your final loan amount.
  • Covers numerous needs, such as purchase of an existing home, construction of new housing, and manufactured, rehabilitation and refinancing — all both on and off native lands.

But Do I Qualify?

By encouraging lenders to serve Native communities, Section 184 is increasing the marketability and value of Native assets and strengthening the financial standing of Native communities. That being said, the loan is reserved for members of Native American and Alaskan tribes, so a borrower must be an enrolled member of a federally recognized tribe and in an eligible state. Typically, one’s tribe will provide a card or a letter proving the enrollment status.

When it comes to family and housing types, Section 184 is limited to single-family housing (1-4 units). The program does not allow adjustable rate mortgages (ARMs) or commercial buildings. A Tribally Designated Housing Entity and an Indian Housing Authority use the funds for developing rental housing or for building single-family homes that are subsequently sold by eligible borrowers. This can open up opportunities for families who have diverse financial and familial needs within the tribal membership.

Even if you think you’re not qualified for a Section 184 loan,

contact your local HUD-approved FBHL loan officer in Missouri, Kansas, Oklahoma, New Mexico, Illinois, Nebraska, Florida, Colorado, Iowa, Minnesota and Indiana to find out for sure.