Why Choose the HUD 184 Home Loan Program

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A loan program for Native Americans.


In 1992, Congress established the Section 184 Indian Housing Loan Guarantee Program. Commonly referred to as the HUD 184 Home Loan Program, it offers home ownership and housing rehabilitation opportunities for eligible Native American individuals, families and tribes.

The HUD 184 Home Loan Program has several features that make it easier for Native Americans to obtain home loans. These include:

  • Very low down payments and closing costs. The HUD 184 Home Loan Program requires a low minimum down payment, compared to 3.5% for FHA or 5% for conventional loan programs.
  • No private mortgage insurance. Unlike FHA and Conventional loan programs, the HUD 184 Home Loan Program does not require monthly mortgage insurance payments.
  • Competitive interest rates. The HUD 184 Home Loan Program offers standard fixed rate loans with no prepayment penalties. Rates are competitive with other loan programs and you don't have to worry about the sudden jumps in interest rates that can happen with variable rate loans.
  • Ability to finance homes on fee simple land or tribal-trust land. Most loan programs will only finance loans on fee simple land. The HUD 184 Home Loan Program allows for properties located on native trust land and fee simple land in approved areas.
  • Multiple options. The HUD 184 Home Loan Program can be used for refinancing, purchasing an existing home or new home construction. It applies to traditional frame built construction, modular and manufactured homes.

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Flexible underwriting makes it easier to qualify.

When you apply for a conventional loan through a bank or mortgage lender, the parameters are set by an automated, software-driven underwriting mechanism. If you don't fit into the pre-determined "box," you don't qualify for the loan.


The HUD 184 Home Loan Program has certain basic criteria that must be met in order to qualify for a loan. But the program also makes generous allowances for lack of credit history, past credit problems, or other circumstances that don't fit normal lending parameters.


More important, each loan application is considered on a case-by-case basis, and is personally underwritten by a HUD 184 Home Loan Program representative. This allows many Native Americans who would not qualify for conventional loans to obtain a HUD 184 Home Loan.


No mortgage insurance on the HUD 184 loan results in substantial savings.

Mortgage insurance (MI) is an insurance policy which compensates lenders or investors for losses due to the default of a mortgage loan. MI is typically required when down payments are below 20%.


Although the HUD 184 has a low down payment requirement, the loan currently does not require MI. The resulting savings can be significant.


MI rates can range from 0.5% to 6% of the principal of the loan per year based upon loan factors. For example, FHA charges a MI equal to 1.25% of the principal of the loan per year (1). To calculate the annual saving simply multiple your loan balance by 1.25%. The saving can easily amount to several hundred dollars per year or more.



The HUD 184 Home Loan Program specialists.

Because the HUD 184 Home Loan Program is very different from conventional mortgage loans, most large banks and mortgage lenders do not understand how it works.


At Bank2, we specialize in HUD 184 Home Loans. We understand the unique criteria required to qualify for a HUD 184 Home Loan, and we know how to navigate the ins and outs of the HUD 184 Home Loan Program process. We also know how to work with the different outside agencies that sometimes get involved, so that you don't get lost in the shuffle.


Through the HUD 184 Home Loan Program, we'll help you qualify for the right mortgage loan that will enable you to purchase the home of your dreams.