Purchasing a Home using Section 184 Home Loan
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. For example, you are an Alaska Native now living in Los Angeles.
Because the whole State of California is open to the 184 program; you can use it. However, be advised that the 184 program is for owner occupied homes only; no second homes or investment properties are allowed.
What are the benefits of a Section 184 Loan?
- Available on or off tribal lands
- Low down payment of just 2.25%
- No income limits
- Don't need to be a first-time homebuyer
- Seller can pay your closing costs
- Lower minimum credit scores
- Compatible with down payment assistance programs
- No monthly mortgage insurance premiums
- Available in all 50 states
Basic documents required:
- Current tribal enrollment card or certificate
- Drivers license
- Social Security card
- Pay stubs covering the most recent 30 days
- W2s and/or 1099s for the last 2 years
- Federal tax returns for the last 2 years
- Bank statements for the most recent 2 months or quarter
- Retirement statements for the most recent 2 months or quarter
- Contact information for landlords for the last 2 years
NOTE: This is not an all-inclusive list! Other documents may be required for specific situations!
The Section 184 Program is designed to enhance home mortgage lending on trust/restricted lands and in other Indian areas. Only single-family properties are eligible for inclusion in the Program.
Single Family Property - A single-family property is a single structure containing one to four family dwelling units.
Multifamily Properties - (buildings containing more than four units) are not eligible for participation in this Program. Call Agent for more infomation
Multiple Properties - For example, if an IHA/TDHE or Tribe wants to build 20 single-family homes for sale to individual tribal members, each of the homes must have a separate loan with a separate loan guarantee.
Modest Housing - The Section 184 statute requires that all housing under the Program be considered modest in size and design.
Rehabilitation Of Existing Structures With Existing Debt - Rehabilitation by Current Owner. If a current homeowner wishes to undertake rehabilitation with a Section 184 loan, the existing indebtedness may be rolled into the new Section 184 loan by using a credit qualifying refinance with an appraisal.
New Construction - When undertaking new construction, borrowers, lenders, and tribes are free to develop structures that meet the specific needs of individual households.
Rental Housing Eligibility - Rental housing may be developed under the Section 184 Program if the property meets the definition of single-family structure.
Note All rental housing developed under the Section 184 Program must either be owned by:
- An Indian family who is an owner-occupant (i.e., lives in one of the units); or
- An Indian housing authority/tribally designated housing entity; or
- An Indian Tribe.
Interested in applying for a Section 184 Home Loan? At USDA Loans Direct we will assist you every step of the way!