Information on Native American Loan

Introduced in 1992, the Sector 184 of the Native American Loan program has made it much easier for Indians and Alaskans to receive mortgages. This program is administered by the Bureau of Housing and Urban Development or HUD. The main aim of this program is make the Indians financially stable and help those who want to purchase existing homes or build new ones on tribal land. The HUD guarantees these loans so that the banks can give the loans to the borrowers. Finance can be taken for refurbishing the home, buying a new property or building a house within the tribal communities.

There are numerous benefits of opting for a Native American Loan. With the help of 184 financing programs, one can easily get the finance by making a down payment of just 1.25% to 2.25% of the mortgage. The Native American Loans are available at no monthly mortgage insurance. A 1% credit guarantee fee can be added to the financed loan once. Numerous options for credit are available through section 184. The borrowers can readily purchase an existing house, construct a new house (stick built or a manufactured home on permanent foundation), rehabilitate a home, purchase and rehabilitate a home or refinance an existing mortgage. These are available only to the Indians as they often face a lot of problems in obtaining finance for the Indian land. Due to their specific circumstances, most Indians cannot buy their own homes. The section 184 program gives the access to capital to Indians to help them realize the dream of being home owners.

Section 184 stresses on the private funding opportunities for tribes. To be eligible for Native American Loan, one must be an American Indian who is an enrolled member of a federally recognized tribe, an Alaskan native who is an enrolled member of a federally recognized tribe or the member of an Alaskan Village and Regional Corporation established in agreement with the Alaska Native Claims Settlement act, an Indian tribe or an Indian Housing Authority. If you are eligible as per the HUD program guidelines, you can apply for the Section 184 credit program. The program is managed by the local, authorized Public Housing Agency (PHA). The Indian Home Credit guarantee program offers a grant to tribes for purchasing affordable real estate in these communities. The tribal governing body decides on a tribally designated housing entity (TDHE) that prepares the Indian Housing Plan (IHP).

It is hoped that the Native American Loan will improve the situation of the Indians. This will create a win-win situation for not only Indians who get the finance but also for the banks which will get the business while taking very little risk. The extremely low interest rate makes these loans very popular amongst borrowers who can realize their dream of having a new home. Section 184 gives a number of opportunities to low income Native Americans and residents of Alaskan villages to purchase their own home. The Indians will now be able to enjoy the American dream which once appeared to be out of reach.