Those with a Native American heritage can take advantage of several federal incentives and benefits available when applying for a home loan.

HUD Section 184 – Native American Home Loans

The HUD Section 184 Loan Program is a home mortgage specifically designed for Native American tribal members. Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s Office of Native American Programs.

Qualifications

  • One borrower on the loan must be an enrolled member of a federally recognized tribe.
  • The loan can be used for the purchase, construction, or rehab of a primary residence.
  • A borrower may only have one Section 184 loan at a time.
  • The loan can be used anywhere within the State of Arizona and New Mexico, including on reservation land.
  • Borrowers must meet the credit standard required by the program.
  • Borrowers must have a 2-year work history (to be able to use their income to qualify)
  • Down payment funds must come from an acceptable source.
  • May be used to refinance an existing mortgage.
  • Manufactured or modular homes are permitted.

Advantages

  • No income restrictions.
  • Low down payment, 2.25% of the sales price (if over $50,000).
  • Qualification and interest rates not limited by credit scores.
  • Low-interest rates, based on market rates.
  • Low monthly mortgage insurance, a one-time upfront fee of 1.5% is paid at closing and may be financed into the loan.
  • Hands-on approach to underwriting and loan approval, borrowers are allowed to explain their personal financial circumstances in writing during processing.
  • Closing funds can come from family, tribe, or personal finance during closing.
  • Sellers can contribute towards closing costs, up to 6% of the purchase price.

How To Pre-Qualify for a HUD Section 184

Please contact our certified Section 184 loan specialists for more information about the program and specific documents needed in your area. If you are located in Arizona, Colorado, California or New Mexico please contact Marcia Volin, at 480-588-3845 or marcia@vipmtginc.com.