Understanding HUD’s Mortgage Program for Native Homebuyers

If you are a member of a federally recognized Native tribe, you may be eligible to finance your next home through the U.S. Department of Housing and Urban Development’s (HUD’s) mortgage program for Native homebuyers.

HUD is working with lenders across the nation to expand access to home financing for American Indian and Alaska Native households through the Section 184 Indian Home Loan Guarantee Program.

Freddie Mac can buy these loans from lenders to help increase affordable homeownership opportunities for Native households on tribal lands.

What Is the Section 184 Indian Home Loan Guarantee Program?

The Section 184 Program provides HUD-guaranteed loans that are tailored to meet the needs of homebuyers in tribal regions. The loans can be used to purchase, construct, rehabilitate or refinance a home in eligible areas.

What Are the Benefits of a Section 184 Loan?

Affordability

• Low down payments, ranging from 1.25% to 2.25%.
• Built-in mortgage insurance premiums at 0.25% annually, which is lower than most private mortgage insurance options.

Flexibility

• Personalized solutions from manual underwriting, instead of automated application reviews.
• Interest rates based on market rates instead of your credit score.

Stability

• Fixed-rate mortgages only.
• HUD oversight of any fees charged by participating lenders.

The Section 184 program also offers support from HUD staff members who understand the needs of Native homebuyers and can provide resources to keep you in your home.

Who Is Eligible for Section 184 Loans?

To qualify for a Section 184 loan, you must be one of the following:

• Federally recognized American Indian or Alaska Native tribe, and/or tribal member.
• Tribally designated housing entity.
• Indian housing authorities.

Eligibility is also determined by location. Loans must be taken within a designated area, which includes tribal trust land and surrounding communities. More specific information about eligible areas is available on the HUD website.

Additional Program for Hawaiian Natives

HUD supports a related program to promote affordable homeownership for Hawaii Natives. The Section 184A Native Hawaiian Housing Loan Guarantee Program provides financing to buy or rehabilitate homes on Hawaiian homelands.

Section 184A loans are available to Native Hawaiians eligible to reside on Hawaiian homelands. Some key features include:

• Fixed-rate mortgages.
• Low down payments: 2.25% for loans exceeding $50,000, and 1.25% for loans up to $50,000.
• A one-time, 1% loan guarantee fee, which can be added to the loan amount, instead of mortgage insurance.

Find more information and tools on HUD's Section 184A program website.

How Do I Get Started?

Once you are ready to move forward with finding your next home, you should contact your tribal housing authority. They will be able to provide specifics on the homebuying process in your area and help you build a homebuying team that has the proper knowledge and experience to help you navigate those requirements.