HUD Section 184 – Native American Home Loans
The HUD Section 184 Loan Program is a home mortgage specifically designed for Native American and Alaskan native tribal members. Section 184 loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s Office of Native American Programs.
Who can qualify for a Section 184 Loan?
· At least one borrower on the loan must be an enrolled member of a federally recognized Tribe
· The loan can be used for the purchase of a primary residence
· A borrower may only have one Section 184 loan at a time
· The loan can be used anywhere within the state of Arizona, including on reservation lands
· Borrowers must meet the credit standard required by the program
· Borrowers must have a 2 year work history (to be able to use their income to qualify)
· Down Payment funds must come from an acceptable source
What are the benefits of a Section 184 Loan?
· Low down payment: 2.25% of the sales price (if over $50,000)
· Qualification is not credit score driven – the borrowers must meet the credit standard required by the program
· Low interest rates – based on market rates
· Annual mortgage insurance is .25% and a one-time upfront fee of 1.5% is paid at closing or can be financed into your loan.
· The program utilizes a hands-on approach to underwriting and approval, allowing borrowers the chance to explain different circumstances
· Funds for closing, including down payment & closing costs, can be from the borrower’s own funds, or can come from a gift or loan from family, the Tribe or other approved non-profit
· No income restrictions
· Sellers can contribute up to 6% of the sales price towards closing costs
· Reserves may be required
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!
How do I get prequalified?
To see if you prequalify for the HUD 184 loan please complete an online application
Please contact our certified Section 184 loan specialist, Jheri Tenge, at
480-695-7033 or JTenge@submort.com
To prequalify, your credit will be checked and we will look at your work history, income, current monthly payments and source of funds.