Hud Section 184 Loan Info

In 1992, Congress established the Section 184 Indian Housing Loan Guarantee Program to create home mortgages specifically designed for American Indian and Alaska Native families, Alaska Villages, Tribes, or Tribally Designated Housing Entities. Hud Section 184 loans can be used, both on and off native lands, for new construction, rehabilitation, purchase of an existing home, or refinance. Bank of England Mortgage is here to provide you with answers to all your questions.

To assist in increasing Native American’s access to financing, the Office of Loan Guarantee within HUD’s Office of Native American Programs, guarantees the Section 184 home mortgage loans made to Native Borrowers. By providing this guarantee, HUD has made it possible for lenders to serve Native Communities both on and off the reservation. This increases the marketability and value of the Native assets and strengthens the financial position of Native Communities.

Loan Eligibility

Section 184 Home Loan Guarantee is reserved for members of Native American and Alaskan tribes, so to receive a Section 184 loan you must be an enrolled member of a Federally Recognized Tribe. Verification or tribal enrollment will be necessary upon application for a Section 184 loan. Enrollment decisions are made solely by the tribal government. Typically your tribe will provide a card or a letter proving your enrollment status. Trust lands and tribal members on and off reservation may be eligible. Give us a call, we can provide you with clarification and answers to all your questions (888) 639-2517.

HUD Section 184 Eligibility Areas.

Education

As one of the largest and most exciting purchases you’ll make, home buying is an important step in life, at Bank of England Mortgage, we want to make sure you are constantly informed and stress-free during this journey. Lucky for you we are experts, specializing in all parts of the 184 home loan process. There are also home buying classes and counseling sessions available in nearly every state. Understanding all the required steps of loan approval will help expedite the approval process, and in some Tribes a reward financial assistance are given to those who attend.

BENEFICIAL FEATURES OF THE HUD 184 LOAN PROGRAM:

• The program provides the opportunity to secure home financing on "fee simple land" and native trust land in approved areas.
• There are competitive interest rates for various fixed rate terms and no penalties for paying the loan off early or making extra payments.
• Borrowers may use this program to purchase a house, to finance the construction of a new home or to refinance an existing property.
• Traditional frame-built construction, modular and manufactured housing are all eligible under the program.
• Minimum down payment requirements and closing costs are considerably lower with the HUD 184 Home Loan Program when compared to traditional FHA and Conventional loan programs; this allows those eligible for this program more options for home financing.

HUD Section 184 Loan Types

Documents Typically Needed for a Purchase Loan
• Proof of tribal enrollment
• Copy of photo id and social security card
• Last three months of bank statements
• Most recent paystubs
• Last two years of W-2's
• If self-employed, last two years of tax returns
• Per capita income, most recent check copy and two years' 1099
• Landlord contact info for rental verification
• Purchase agreement

Documents Typically Needed for a Streamline Loan
• Proof of tribal enrollment
• Copy of photo id and social security card
• Copy of your current note and mortgage

Documents Typically Needed for a Cash Out Loan
• Proof of tribal enrollment
• Copy of photo id and social security card
• Last three months of bank statements
• Most recent paystubs
• Last two years of W-2's
• If self-employed, last two years of tax returns
• Per capita income, most recent check copy and two years 1099
• Deposit towards a new appraisal (we will order)

Documents Typically Needed for a Standard Refinance Loan
• Proof of tribal enrollment
• Copy of photo id and social security card
• Last three months of bank statements
• Most recent paystubs
• Last two years of W-2's
• If self-employed, last two years of tax returns
• Per capita income, most recent check copy and two years 1099
• Deposit towards a new appraisal (we will order)

Documents Typically Needed for a Construction Loan
• Proof of tribal enrollment
• Copy of photo id and social security card
• Last three months of bank statements
• Most recent paystubs
• Last two years of W-2's
• If self-employed, last two years of tax returns
• Per capita income, most recent check copy and two years 1099
• Deposit towards a new appraisal (we will order)
• Building contract with a licensed general contractor
• Plans and specifications for the house
• Itemized line budget

Purchase
The Section 184 loan can be used to purchase a home on your reservation or in participating fee simple areas off of your reservation. Even if you now live far from your reservation, you may still be able to use the Section 184 loan benefit to purchase a home. The Section 184 loan is very similar to an FHA loan, but because it is reserved for Native Americans it is much less expensive and is more flexible than an FHA loan.

Streamline Refinance
If you currently have a Section 184 loan and want to reduce the interest rate or term of your loan, the streamline refinance is a very simple way to accomplish your goal. No appraisal, income or asset verification is required. You must have made your mortgage payment on time for the past twelve months.

Cash Out Refinance
If you need to consolidate debts or want to receive cash from the equity of your home, the Section 184 loan will allow you to borrow up to 85% of the current appraised value of your home. All types of debt may be paid off and you may also receive up to $25,000 cash in hand at closing.

Standard Refinance
You can use this refinance if your current loan is not a Section 184 loan.

Construction
The Section 184 construction loan is very flexible in that it allows you to build from scratch a stick-built, modular or manufactured home to meet the needs of your family. If you already own your home or are purchasing an existing structure, Section 184 can lend you the necessary funds to restore, renovate, remodel or expand the home.

One major benefit of the Section 184 construction loan is that it is a single closing and your permanent rate is locked in at closing. Saving you time and money!

Building in Alaska? Visit our Alaska 184 Loans website.

Construction Loan tips
• Get pre-qualified for a loan amount before you start working with a builder. This will keep you in budget and save time during the process.
• Your builder must also qualify to build with this program. Have your builder contact us right away to ensure they are qualified or if not, complete the necessary paperwork.

Focused Underwriting

As with any other loan program, the HUD 184 Home Loan Program requires certain criteria to be met in order for borrowers to qualify for the loan. However, guidelines for loans under this program may allow for special circumstances that contributed to previous credit problems, a lack of credit history, or other situations falling outside typical lending requirements.

Due to the special nature and specifications of the HUD 184 Home Loan Program, it's key to work with a mortgage professional who has been trained and specializes in this unique program. That is exactly what is found in our team at Bank of England Mortgage. We know the specifications of this mortgage program and have the experience to guide you through every step of the way. We work closely with the various agencies involved with the process and are familiar with their requirements and best practices for the program.

Our knowledge and experience give us what it takes to lead you through the experience smoothly and with peace of mind.

Call us today at (888) 639-2517 to see if you qualify for the HUD 184 Home Loan Program! If you do, this program may help get you closer to realizing the dream of homeownership.