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Public and Indian Housing(PIH) Loan Programs
PIH Section 184 Home Loans
The Section 184 loan guarantee program is designed for the American
Indian and Alaska Native families, tribes, Alaska Villages or tribally
designated housing entities. Congress established this program in 1992
to improve access to capital for Native Americans, before this the
unique status of Indian lands caused this small but growing market to be
underserved. Since the inception of Section 184 homeownership and
housing rehabilitation opportunities for eligible Native American
individuals, families, tribes and tribally designated housing entities
(including Indian Housing Authorities) on their native lands and within
an approved Indian area have improved significantly.
The reason PIH loans were needed is because much of the land in
Indian Country is held in trust by the United States government for the
benefit of a particular tribe or individual Native American. Land held
in trust for a tribe cannot be mortgaged, and land held in trust for an
individual must receive approval from the Bureau of Indian Affairs
(BIA), before a lien is placed on the property. Without the ability to
mortgage and foreclose on a home or place a lien on individual trust
property, lenders were not willing to make home loans to individual
Native Americans.
HUD guarantees each Section 184 mortgage loan made to eligible Native
Americans. The loan guarantee made by HUD insures that the investment
made by the lender will be repaid in the event of a foreclosure.
Who is eligible for a section 184 loan:
- A Tribally Designated Housing Entity
- American Indians or Alaska Natives who are members of a
federally recognized tribe
- An Indian Housing Authority
- An Indian tribe
Section 184 requirements:
- Must be a fixed rate loan(adjustable rate loans are not allowed)
- Term of 30 years or less
- Borrower must pay a 1% loan guarantee fee at closing, which may
be financed into the mortgage
- Single-family housing(1-4 units)
If any additional information or resources are needed call the Public
of Indian Housing -
1-800-955-2232
9:00 a.m. to 5:00 p.m., Eastern Standard Time(EST)
Monday through Friday.