Housing and Urban Development (HUD) 184 Native American Housing Program
Brief Description: HUD Section 184 Indian Housing Loan Guarantee Program is designed to offer homeownership, property rehabilitation, and new construction opportunities for eligible Native American individuals or families who want to own a home. Montana Housing partners with HUD, who administers the program, to provide affordable mortgage rates for HUD 184 insured loans.
Montana Housing Guidelines for HUD 184 loans
Borrower Eligibility Criteria:
- Income limits
- First-time homebuyer(s); waived for targeted area.
- Home must be primary residence for the life of the loan.
- Must be a member of a federally-recognized tribe.
- No asset limitations.
- Single family home, townhouse, de-titled manufactured home on permanent foundation or condo unit (Montana Housing will purchase loans on up to 25% of units in a project).
- Purchase Price Limits
- Limit of 15% for business use.
- Land limited to 35% of value of property on new construction that has private water or sewer.
- Maximum parcel size of 40 acres, with no subdivision of land possible.
- Must meet applicable building code and have infrastructure.
- Must have tribal approval if on lease or tribal trust lands; BIA if allotment; fee simple is allowed.
- 30-year fixed rate loan, with no origination or discount points charged at closing.
- IRS recapture potential.
- New construction or existing home.
- Hazard insurance $1,500 or 1% of dwelling coverage deductible except Wind/Hail can be $2,500 or 1%
- Escrow for tax and insurance.
- Tribe must have approved legal procedures for evictions, priority of lien, leasing, and foreclosure.
- Per HUD 184 guidelines
- LTV cannot exceed 97.75 or 98.75 of appraised value.
Down payment Sources:
- Tribal resources or approved HUD source.
- Montana Housing pays a portion of closing costs on behalf of borrower.
Mortgage Insurance Information:
- Requires HUD 184 coverage.
- If done at the Set-aside rate, higher income limits are available for households of 9 or more people, and Montana Housing pays lender origination fees for the borrow.
- If done as a regular bond loan, Montana Housing regulates points and fees that can be charged. Consult Board staff with any questions.
- Reservations valid 60 days for existing homes or 180 days for new construction.
- 0.25% fee charged for extensions, 0.50% for cancelation.
Reservation Process for HUD184:
Input on Lender On Line web based reservation system
Fax Borrow Stat Sheet and Homebuyer Education Certificate
Fax reservation to Montana Housing including:
- Reservation cover sheet and required documentation listed
Special Reservation Criteria
Must submit HUD 184 approval documentation to Montana Housing before reservation can be approved.
This is a summary of the Montana Housing program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide or Terms and Conditions for Whole Loans .