Established in 1992, the Section 184 loan provided by HUD, the Department of Housing and Urban Development, has helped thousands of Native Americans get home loans both on and off reservations. For those who are looking for some quick tips about the HUD 184 loan, what is required for both home and borrower eligibility, and more, continue reading below.
Highlights
No maximum income limits
Low PMI monthly mortgage insurance
Down payment requirement of 2.25%
1.5% one time, up-front guarantee fee that is financed into the loan
Needs to be an owner occupied primary residence only
NOT credit score driven, but but credit history will be reviewed
Homebuyer education is NOT required
Gifts of money funded by family or the tribe for assistance are allowed
Borrower Eligibility
Must be in an approved Native American area (includes 39 states)
Borrower can only have one HUD 184 loan at a time, once paid off, then borrower can apply for another one
We need to have at least one enrolled member of a Federally Recognized Tribe, but they do not necessarily have to be related to, or married to the others on the loan.
Property Requirements
Below are the property requirements for the HUD 184 loan that must be met, especially where the property is located:
Needs to be a 1-4 single family residence
Manufactured/Modular homes
FHA approved condos
Must be located on Section 184 eligible area (see the red and yellow map below) that has been approved
184 Can be used in: Yellow – whole state, Red – certain counties, White – Ineligible
184 Terms and Limits
The HUD 184 loan can be used for:
Purchase
Purchase and remodel/upgrade
Rate and term refinance
Cash out refinance
New Construction
Remodel/Upgrade
Debt Consolidation
15 or 30 years fixed rate
Seller can contribute up to 6% seller concessions
Max 41% DTI (debt-to-income) ratio
Maximum loan limits will vary by county and state. Each has a different amount and here is a breakdown of each loan limit by state
Approved Lenders
There are approved lenders all across the country, including 1st Tribal. Eligible borrowers can apply, but must work with an approved 184 lender that have a deep understanding of the intricacies of the HUD 184 program. If you have any questions about what was covered in this post, or would like to know more information, feel free to contact us at 1st Tribal, call us at (866) 235-4033, or leave a comment below.