American Indian Home Loan Guarantee Program
The US Congress developed the Indian Home Loan Guarantee Program (Section 184) in the early 1990’s. The program promotes homeownership opportunities for Native Americans and helps increase access of capital within native lands. This mortgage program is specifically designed for American Indian and Alaska Native families, Alaska villages, tribes, or tribal designated housing areas.
Benefits – American Indian Loan Program
- Purchase a home with a low down payment of 2.25% on loans of more than $50,000 and only 1.25% on loans of less than $50,000.
- No maximum income limits
- Fixed interest rate for 15 or 30 year loans
- No monthly mortgage insurance: A one-time 1.5 percent fee is paid by the borrower at closing and can be financed into the loan.
- Flexible underwriting requirements.
- Section 184 loans can be used on and off native lands, for new construction, purchasing an existing home, rehabilitation, or for refinancing.
- Gifts and tribal assistance are permitted for down payments or help with closing costs.
- The program is not credit score driven and you do not qualify just by the score alone.
Requirements – Native American Loan Program
- You must be an enrolled member of a Federally Recognized Native American or an Alaskan tribe.
- The maximum loan amount is 150% of the Federal Housing Administration (FHA) lending limits for the area. There are no prepayment penalties.
- You must use a lender from the programs approved list of lenders.
- Must be located on an approved Section 184 area
- Can be a 1-4 single family residence, manufactured or modular home, or an FHA approved condo.
- Must be an owner occupied primary residence only
- Your debt-to-income (DTI) is a max of 41%
- A borrower can only have one Section 184 loan at a time.
Get Started! Complete the form below to see if you qualify for this program.