Section 184 Considerations for Pre-Foreclosure

Recently, there has been an effort to address concerns with the lack of mortgage lending in and around Native American tribal lands along with a rise in referrals for loans subject to the regulations of the Section 184 Indian Housing Loan Guarantee (“Section 184”) program. As a brief history, Section 184 is designed to increase opportunity and access for certain Native American families to achieve home ownership. Per HUD’s website:

The Section 184 Indian Home Loan Guarantee Program is a home mortgage product specifically designed for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership and increase access to capital in Native American Communities.

With Section 184 financing borrowers can get into a home with a low down payment and flexible underwriting. Section 184 loans can be used, both on and off native lands, for new construction, rehabilitation, purchase of an existing home, or refinance.

Section 184 is synonymous with home ownership in Indian Country.

See https://www.hud.gov/section184.

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