In 1992, “The Section 184 Indian Home Loan Guarantee Program” was put into action by the U.S. Department of Housing and Urban Development (HUD). It is affectionately referred to as Section 184 and its purpose is to make it easier for American Indian and Native Alaskan families, Alaska Villages, Tribes, or Tribally Designated Housing Entities to get home loans on tribal trusts, individual allotted trusts, or fee simple land in an operating area.
Resources for Section 184 Help
If that last description sounded a little confusing, then don’t worry, it is. It can be hard to decipher what exactly falls under “tribal trusts” or “fee simple land”. Luckily you’re not alone. There are several helpful companies that specialize in obtaining Native American home loans. They can be a great resource once you’ve decided to apply for one.
If you’re not sure whether you qualify for a Section 184 loan than one of the best resources will be HUD itself. You can contact regional staff members whose job it is to help you with any questions you have. Sometimes you can qualify, even if you live far from your reservation, so don’t be afraid to ask every question you can. Home loans are a big decision and these staff member’s job was created solely to provide service to you.
3 Uses of Section 184 Loans
Purchase a Home. You can use it to purchase a home on your reservation or in participating fee simple areas away from your reservation.
Refinancing. There are several different ways to refinance.
Streamline- To reduce the interest rate or the term of your loan this may be your best bet.
Cashout- This is an option to consolidate debts or get cash.
Standard Refinance- you can refinance if your current loan is not a Section 184 loan.
New Construction. This loan is flexible and can allow you to build a variety of homes that will meet the needs of your family. This loan can also be used for renovations, remodels, or the expansion of an existing home.
Do What’s Best for You
As with any kind of financial decision, these options are highly dependent on your individual situation. These loans may not be right for everyone so use all the resources at your disposal to thoroughly research which avenue is right for you. You could be taking the first steps to one the greatest investments you’ll ever make!