With the goal in mind of helping build Native American homeownership, HUD designed the Section 184 program to have maximum flexibility. There are three major categories of loans:

 

1) Purchase a Home - Section 184 Home Loan

 

The Section 184 loan can be used to purchase a home on your reservation or in participating fee simple areas off of your reservation. Even if you now live far from your reservation, you may still be able to use the Section 184 loan benefit to purchase a home. For example, you are an Alaska Native now living in Los Angeles. Because the whole State of California is open to the 184 program; you can use it. However, be advised that the 184 program is for owner occupied homes only; no second homes or investment properties are allowed.

 

The Section 184 loan is very similar to an FHA loan, but because it is reserved for Native Americans it is much less expensive and is more flexible than an FHA loan.

 

Typical documents that you will need to provide for a purchase loan:

 

• Proof of tribal enrollment

• Copy of photo id and social security card

• Last three months of bank statements

• Most recent paystubs

• Last two years of W-2’s

• If self employed, last two years of tax returns

• Per capita income, most recent check copy and two years 1099

• Landlord contact info for rental verification

• Purchase agreement

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2) Refinance - Section 184 Home Loan

 

Section 184 allows for three types of Refinance:

 

Streamline – If you currently have a Section 184 loan and wish to reduce the interest rate or term of your loan, the Streamline refinance is a very simple way to accomplish your goal. No appraisal, income or asset verification is required. You must have made your mortgage payment on time for the past twelve months.

 

Typical documents that you will need to provide for a streamline loan:

 

• Proof of tribal enrollment

• Copy of photo id and social security card

• Copy of your current note and mortgage

 

Cashout – If you need to consolidate debts or receive cash, the Section 184 loan will allow you to borrow up to 85% of the current appraised value of your home. All types of debt may be paid off and you may also receive up to $25,000 cash in hand at closing.

 

Standard Refinance – You can use this refinance if your current loan is not a Section 184 loan.

 

Typical documents that you will need to provide for a cashout or standard refinance loan:

 

• Proof of tribal enrollment

• Copy of photo id and social security card

• Last three months of bank statements

• Most recent paystubs

• Last two years of W-2’s

• If self employed, last two years of tax returns

• Per capita income, most recent check copy and two years 1099

• Deposit towards a new appraisal (we will order)

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3) Construction - Section 184 Construction Loan

 

The Section 184 construction loan is very flexible in that it allows you to build from scratch a stick built, modular or manufactured home to meet the needs of your family. If you already own your home or are purchasing an existing structure, Section 184 can lend you the necessary funds to rehabilitate, renovate, remodel or expand the home. Many homes on the reservation are out of date or suffer from neglect, and the Section 184 loan has successfully made these homes safe and attractive places to raise your family.

 

A major benefit of the Section 184 construction loan is that it is a single closing and your permanent rate is locked in at closing. Many construction loans require two closings resulting in added expenses and the risk that rates may go up while your home is being built.

 

We have worked with hundreds of homeowners and many tribes to build their dream homes. For more information on a construction loan, Contact Us.

 

Tips on getting started

 

Get pre-qualified for a loan amount before you start working with a builder. It is easy for your plans to get out of control if you don’t have a budget for your builder/architect to work from.Your builder must also qualify to build with this program. Have your builder contact our builder approval department early in the process to complete the necessary paperwork.

 

Typical documents that you will need to provide for a construction loan:

 

• Proof of tribal enrollment

• Copy of photo id and social security card

• Last three months of bank statements

• Most recent paystubs

• Last two years of W-2’s

• If self employed, last two years of tax returns

• Per capita income, most recent check copy and two years 1099

• Deposit towards a new appraisal (we will order)

• Building contract with a licensed general contractor

• Plans and specifications for the house

• Itemized line budget