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What is a HUD Section 184 Home Loan in California

December 16th, 2014 12:17 PM by Nathan Rufty

What is a HUD 184 Home Loan Program in California and How do I qualify for one?


Purpose of the HUD-184 loan program:


The HUD Section 184 program is based on a government-to-government relationship between federally recognized tribes and the United States Government. American Indians and Alaska Natives may access this loan guarantee program as a benefit of purchasing a home as their primary residence while currently enrolled as members of federally recognized tribes, bands, communities, villages, Pueblos and Rancherias in the U.S. 

Borrower Eligibility for the program:

An applicant must be a member of a federally recognized tribe, a regional or village corporation as defined in the Alaska Native Claims Settlement Act or one of the five approved state tribes: Coharie Tribe (North Carolina); Haliwa-Saponi Tribe (North Carolina); Lumbee Tribe (North Carolina); Waccamaw Siouan Tribe (North Carolina); MOWA band of Choctaw (Alabama). To determine if a tribe is federally recognized, consult the Bureau of Indian Affairs website for the most up-to-date tribal directory (found at www.bia.gov under Document Library, referred to as FR Notice – Indian Entities Recognized and Eligible to Receive Services). Proof of membership or enrollment in a federally recognized tribe (or one of the five approved state tribes) will be determined through possession of a tribally issued enrollment card or through possession of a letter from the tribal enrollment office stating that the applicant is a member of the tribe. 

Property Eligibility 

The property that will be guaranteed by the HUD Section 184 program must be in an approved Indian Operating area. As of 2013 there are Indian operating areas in 39 states. The map of approved Indian operating areas can be found on the HUD website at: 


Only properties located on Fee Simple Land are eligible at this time, we do not lend on leased land. 

Note: Eligible tribal members are not limited to purchasing a home in a place where their tribe is authorized to provide housing. For example, if an Oklahoma tribal member wants to purchase a home in California that is allowed. 

Maximum LTV/CLTV Transaction Type 

Max LTV 





Rate/Term Refi 

Cash-Out Refi 



2HUD will permit second mortgages when the purchase price of the home is higher than Section 184 loan limits. The second mortgage cannot substitute for the 2.25% required down payment. The combined first and second mortgages cannot exceed the appraised value. Eligible Loan Types 

Owner Occupied Only 


Rate/Term Refinance 


Minimum FICO 

600 for all transaction types 


Why Should I Use the HUD Section 184 Loan?

There are many advantages in using this program:

Low Down Payment: 2.25% down payment of the purchase amount on loans over $50,000 and only 1.25% on loans under $50,000, this less than the standard requirement on FHA loan of 3.5% down on any loan amount 

No Pre-pay penalty: Can pay loan off at anytime 

No Monthly Mortgage Insurance: only a one time 1.5% up front guarantee fee which can be financed into the loan 

Protection from predatory lending: Program is monitor on the fees that an approved lender can charge Native American borrowers. Section 184 loans cannot be used for Adjustable Rate Mortgages (ARMs), fix rates only



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