There is currently a lack of mortgage lending for Natives who live on the Reservation because of the issues with Trust land. Most banks will not allow any financing on Trust land. This can make finding a loan for a tribal member overly difficult. In 1992, Congress created a program that would help address the lack of availability of mortgages on tribal lands and just like that HUD 184 was born. Here is some information to help you find out if you qualify so you can stop asking the question do I qualify for HUD Section 184 loans and finally know the answer!
Are you part of a tribe?
To use the Section 184 Loan, you must be a currently enrolled member of a Federally Recognized Tribe. HUD Rules state that we can have non-natives on the loan, as long as we have at least one enrolled tribal member of a federally recognized tribe on the loan also. The link above leads to a complete list of all federally recognized tribes broken down in the 37 states it is available in. As always, if you have any questions about anything please feel free to reach out to us here at 1st Tribal in the comments section below.
What are you buying?
The first thing to consider is what exactly you’re planning to purchase with your loan. There are several different things that are covered under the HUD 184 loan plan. These different actions include:
- Purchase an Existing Home
- Refinance a Home (rate and term, streamline, cash out)
- Construct a New Home (site-built or manufactured homes on permanent foundations)
- Rehabilitate a Home (including weatherization)
- Purchase and Rehabilitate a Home
The loan that you can qualify for under HUD Section 184 covers all of these things, and you can find the finer details and fine print of the program here. In order to qualify though, the loan is going to be based off of credit and income. When it comes to credit, if there are any open collection accounts, tax liens, judgments, or late payments of 30 days or longer, then the loan cannot be closed. You have to be able to qualify for monthly payments in order to receive the loan. But, if you have bad credit, with some hard work, time, and energy, you can improve your credit and try to qualify for a HUD 184 loan.
Where can you find a lender?
Once you are ready to apply for a Section 184 loan and know that you can qualify for the HUD 184 loan, you can contact an approved lender. Unfortunately, you can’t just go out and find your own lender. In order to use the HUD 184 loan that you qualify for, you have to use a lender from their federally approved list of lenders. You can find the approved list on the HUD website or here. Some lenders are available all across the country, and some are only available in certain states.
If you need any clarification on what was covered in this post about if you qualify a HUD Section 184 loan, feel free to leave a comment or contact 1st Tribal Lending with your question privately.