Native American Home Loan Guarantee Program

Text Size:

Print:

The Native American home loan guarantee program is authorized under the Housing and Community Development Act of 1992. Section 184 of this housing loans program is formulated by the HUD to offer property rehabilitation, home ownership, refinance opportunities and new construction for eligible Native American individuals, Native American Housing authorities and tribes. This government loans program is a mortgage product formulated for the American Native Americans and Alaska Native families. These types of government loans were established by the Congress to facilitate homeownership for Native American communities.

Section 184 of the Native American housing loans guarantee program provides borrowers with mortgage facilities so that they can purchase a home with low initial down payment. There is no flexible underwriting and no monthly mortgage insurance associated with this housing loans program.

Some of its features are:

● For loans over $50,000, the down payment requirement is just 2.25%
● For loans under $50,000, the down payment requirement is just 1.25%
● There is no monthly mortgage insurance
● One percent loan guarantee fee can be added to the loan financed, which is a one-time payment
● The HUD loan guarantee specialists and underwriters are accustomed with the unique circumstances and issues that are faced by Native Americans, when they try to obtain loan mortgages in a Native American country

The section 184 of the Native American home loan guarantee program provides numerous options to the borrowers of this government loans program.

● Refinancing, this might include streamline, rate and term, cash out, etc.
● Rehabilitation and purchase
● Rehabilitation loans
● Home construction, which includes manufactured homes, stick built on a permanent foundation
● Existing home purchase

The HUD guarantees that the mortgage loan is given only to eligible borrowers. The Native American home loan guarantee program assures that in the event of a foreclosure the investments made by the lender will be paid back. The borrowers of this government loans program can apply with a participating lender. The borrowers of this loan have to be from one of the following groups:

● Alaska Natives or American Native Americans, who are enrolled as members of a tribe that is recognized federally
● A member of a Regional Corporation or an Alaska Village who is an established pursuant to the “Alaska Native Claims Settlement Act”
● An IHA or Native American Housing Authority
● A Tribally Designated Housing Entity or TDHE
● A Native American Tribe

The eligibility of this housing loans program is restricted to single family housing, which is of 1 to 4 units with fixed rate loans for thirty years or less.