Section 184 Native American Home Loan Guarantee Program

The Section 184 Indian Home Loan Guarantee Program is an incredible opportunity for eligible Native American borrowers. One of the biggest advantages of this program is the low down payment—just 2.25%—which can be gifted or covered through down payment assistance programs (check with your Tribal office for availability). Even better, Section 184 loans do not require monthly mortgage insurance, helping to keep your monthly payments more affordable. The program can be used to purchase, build, rehabilitate, or refinance a home, whether on or off tribal land. Backed by the U.S. Department of Housing and Urban Development (HUD), this loan offers added security and was created to support greater access to homeownership in Native American communities.

Who Is Eligible for a Section 184 Loan?
To qualify for a Section 184 loan, you must be an American Indian or Alaska Native planning to live in the home as your primary residence. You must also meet standard credit and underwriting guidelines.

Owner-occupied only: The home must be your primary residence.
Tribal membership: You must be an enrolled member of a federally recognized tribe.
Low down payment: A minimum of 2.25% is required, which can be gifted or covered by down payment assistance. (Contact your Tribal office to see if assistance is available.)
Debt-to-income ratio: Your total monthly debts—including your future house payment—should not be more than 41% of your gross monthly income.

For questions or information please contact Maxine Jones, approved Broker for the Section 184 Loan Program.

Debt to Income Ratio

A debt-to-income ratio (DTI) helps lenders determine if you can afford the costs of homeownership while still meeting your other financial responsibilities. It’s calculated by adding up all your monthly debt payments—including your new house payment—and dividing that total by your gross monthly income.

For the Section 184 loan, a DTI of 41% or less is generally required. However, in some cases, your DTI can go as high as 43% if you have strong compensating factors, such as a high credit score, extra savings, or a long and stable job history. These additional strengths can help offset the higher ratio and still allow you to qualify.

Delinquent Credit Items:

Judgments, Garnishments, or Liens. Any judgments, garnishments, or liens must be paid in full before closing. The borrower must furnish a satisfactory letter of explanation and must have reestablished good credit.
Bankruptcy. The bankruptcy must have been discharged fully, and the borrower must have reestablished good credit and demonstrated an ability to manage financial affairs. There must be at least two years between the discharge of the bankruptcy and the mortgage application. A shorter elapsed time–but not less than 12 months–is justified if the lender is able to document that extraordinary circumstances caused the bankruptcy (such as an extended illness that was not covered by health insurance) and that the borrower’s current situation is such that the events that led to the bankruptcy are not likely to recur. In all cases, the lender must have sufficient documentation to support the decision that the borrower is credit-worthy. A borrower paying off debts under Chapter 13 of the Bankruptcy Act or making payments through a Consumer Credit Counseling plan may also qualify if:
1. One year of the pay-out period has elapsed and performance has been satisfactory; and
2. The borrower receives court approval (if Chapter 13) to enter into the mortgage transaction.
Previous Mortgage Foreclosure. Generally, HUD will not guarantee a mortgage if the borrower has been a defendant in mortgage foreclosure proceedings that were completed within the past three years. However, an exception may be made if the foreclosure was the result of extenuating circumstances that were beyond the control of an owner-occupant borrower and the lender’s underwriting confirms that the borrower has re-established good credit and has demonstrated an ability to manage financial affairs. This exception does not apply if the borrower used the foreclosed property as a second home or for investment purposes.
Suspensions and Debarment. A borrower suspended, debarred, or otherwise excluded from participation in the Department’s other programs is not eligible for a Section 184 mortgage. The lender must examine HUD’s “Limited Denial of Participation (LDP) List” and the Government-wide General Services Administration’s (GSA’s) “List of Parties Excluded from Federal Procurement or Nonprocurement Programs.” If the name of any party to the transaction appears on either list, the application is not eligible for a loan guarantee. (An exception is made when a seller appears on the LDP list and the property being sold is the seller’s principal residence.)
Delinquent Federal Debts. If the borrower is presently delinquent on any federal debt (e.g., U.S. Department of Veterans Affairs (VA)-guaranteed mortgage, HUD/FHA insured or guaranteed mortgage, HUD Section 312 Rehabilitation loan or Title I loan, federal student loan, Small Business Administration loan, delinquent federal taxes) or has a lien, including taxes, placed against property for a debt owed to the United States, the borrower is not eligible until the delinquent account is brought current, paid, or otherwise satisfied, (e.g., satisfactory repayment plan is made between the borrower and the federal agency owed). Lenders must verify through HUD’s Credit Alert Interactive Voice Response System (CAIVRS) that borrowers are not presently delinquent on any federal debt. To obtain additional information about CAIVRS and a CAIVRS access number, lenders should contact their local HUD Office or the Program ONAP.
Collection Accounts & Past Due Accounts. If there are any open collections or past-due accounts on your credit report, they must be paid in full before your loan can close. You’ll also need to provide written proof—such as a letter or statement from the creditor—confirming the account has been closed with a zero balance. Taking care of these items early in the process helps ensure a smoother approval and shows that you’re financially ready for homeownership through the Section 184 program.

Eligible Activities

Eligible borrowers may use the guarantee program for the:

Acquisition of existing housing
Rehabilitation of existing housing
Acquisition and rehabilitation of existing housing
Construction of new housing unit/s
Refinance
Loan guarantees for commercial structures are not eligible under the Section 184 program.

Mortgage Terms:

The term of the loan may not exceed 30 years.
Interest rates established by the lender must reflect current market rates and cannot be adjustable.
Maximum mortgage amounts are set based on an established loan-to-value ratio and the borrower’s debt to income ratio, and, in no case, can these mortgage amounts exceed 150 percent of the FHA (HUD’s Federal Housing Administration) mortgage limit established for the locality.

Employer Information Needed:

Are you self employed? (a borrower with ownership interest in a business of 25 percent or more is considered self-employed for mortgage loan underwriting purposes)
Name of Employer (If retired, please note who you retired from and how many years retired)
Address
Phone number
Phone number for HR or who would directly fill out a verification of employment
Type of business
Job title
Years on job (if less than 2 years need same info for past employer and start/end date)

Monthly GROSS income:

If self-employed, please indicate and will need the last two years of tax returns with all schedules to take an average of 24 months’ income minus deductions from schedule C.
If using bonuses, tips, or overtime income, the income is calculated separately from gross base salary. Must have at least two years and will need full two years of taxes all schedules.

Other Income: Tribal Distributions, VA Benefits, Notes Receivable, Alimony/Child Support, Social Security Income, Retirement accts – type and approx. balance

List any Stocks/Bonds/CD’s – Company held with/Amount/s in Account
Bank Information
- Name of Bank, Type of Account and Account Number/s
- Balances kept in Accounts. Lenders will want to see 2 months bank statements. The latest statement showing you currently have the amount in your account that is listed on application.

Documents lenders require for underwriting approval:

Last pay stub/s equaling 1 month showing year to date income
Last two months bank statements (All pages mandatory – if it says 1 of 7 need all 7 even if they are blank. If using online banking, printouts must have Bank or Institution name, your name, and at least the last four digits of the account number listed. If there are any large deposits that are not related to payroll, those must be explained and a paper trail to document the source of funds.)
Other accounts Stocks/IRA’s/etc. – Latest statement (all pages) with year to date information
Copy of your valid driver’s license front and back
Copy of your Tribal ID Card
W2/1099 last 2 years – Last two years taxes with all schedules if self-employed or using bonuses, tips, or overtime.
Tribal Distribution/Per Capita income letter to show 2 years. (A 2-year average will be used for income)
If obtaining Gift Funds, please ask for a Gift Letter form to fill out. You will also need a paper trail of those funds from the donor to you.
If obtaining down payment assistance from your Tribe, please send approval documentation or a letter.
If you own other property, need a mortgage statement, insurance, and tax documentation for debt to income ratios.

To fill out application click on APPLY NOW.

For Questions Please Contact Maxine Jones

Approved Broker for the Section 184 Loan Program

" I am a self-employed individual and oftentimes that can create hurdles when acquiring financing. With Maxine Jones and Resident Lending, it was an easy process, and everything was clearly communicated well in advance.”

– Mike C.

"Over the last 11+ years Maxine at Resident Lending Group has been our saving grace for several real estate transactions. From expertly guiding us through buying our first home with an FHA, to helping us navigate buying our second home without a real estate agent in a FSBO transaction. ..."

– Pete & Michele S

"Working with Maxine was a breeze. She was prompt in letting us know what we needed to provide and was super clear about what we needed to NOT do (ie get into debt). The rates were more competitive and they were more communicative than other companies I’ve worked with in the past. ...”

– Jackie R.

"We have been a client of Maxine Jones for around 10 years. We have always had exceptional service from her plus everyone she refers to me. She makes the process of refinancing almost effortless. ...”

– Susan & Rick C.

“Max and her team are awesome problem solvers and excellent communicators. I always know my clients will get the absolute best care with Resident Lending Group.”

– Mike Roth, Principal Broker, Oregon Premier Realty

“With Maxine Jones and Resident Lending, it was an easy process, and everything was clearly communicated well in advance. We were ready to go shopping for our next home within hours.”