section 184 loan guarantee

Hi Ruskin,

This program is a loan guarantee program for lenders who provide loans to people living in the Alaska native area or the Indian area.

With this program eligible tribes, Native American individuals and Indian housing authorities are able to get loans for home ownership, new construction and property rehabilitation.

For loans on tribal trust lands, a borrower is required to lease the land property, with the approval from the Bureau of Indian Affairs and HUD for the creation of the leasehold estate.

With this only the home and the leasehold interest in the home site are mortgaged. And in case of a foreclosure the ownership of the land remains in the trust of the tribe and only the home and leasehold interest are foreclosed.

Do let us know if you have any other questions.

Thanks
Blue

thanks for the reply, but I am not sure why there is lack of mortgage lenders in the indian country, does anyone know it is so?thanks again for the guidance.

Hi Ruskin,

US government holds most of the land available in the Indian Country in trust to provide benefit to any particular tribe or a individual Native American.

There is a requirement to get approval from the Bureau of Indian Affairs to place any lien on land held in a trust for an individual. With such restriction lenders tend to avoid making home loans for the Native Americans.

how can i get a list of participating tribes under the section 184 program?

Hi Rol,

Welcome to Mortgagefit forum.

You can view the list of participating tribes from this HUD page - http://www.hud.gov/offices/pih/ih/homeownership/184/tribal_list.pdf

Colin

thanks colin but i have one more question, for participating in this program what does a tribe needs to do?

Hi Rol,

For participating in the program, a tribe having tribal court jurisdiction over the property should have-

1. Procedures which can give Section 184 loan 1st lien priority or ensure otherwise that the loan will be paid before other property debts except for any tribal taxes.


2. Acceptable lease in place if there is a tribal trust land.


3. Proper foreclosure procedures.


4. Proper means of ensuring lenders have access to tribal lands regarding evaluation & servicing of guaranteed properties.


5. Proper eviction procedures.


6. Clear knowledge that if foreclosure and eviction procedures are not enforced, then HUD will stop making new loan guarantees in tribe's jurisdiction area.

A copy of the tribal resolution which enacts these procedures is to be mailed to:

Office of Loan Guarantee
National Office of Native American Programs
1999 Broadway, Suite 3390
Denver, CO 80202 or call
Phone: (303) 675-1600, 1-800-561-5913

Do let me know if you have any other questions.

Thanks
Blue

My credit is bad and I'm an enrolled member of a federally recgonized tribe. I desperatly need a home and have a good job and hate to have the money go towards rent when i can apply that money to a home. My father is not enrolled is it possible for him to co-sign for me to get this 184 loan?

I've already replied to your query at http://www.mortgagefit.com/homeloan/tribalmember-cosign.html . Please have a look at it.