Native American Housing Program

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 Board of Housing partners with HUD, who administers the program, to provide affordable mortgage rates and upfront fee payment assistance for HUD 184 insured loans.

Borrower Eligibility Criteria:
Income limits (click here)
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

Property Criteria:
Purchase Price Limit of $237,031
Single Family home, townhouse, or condo, existing home or new construction
Manufactured home on permanent foundation allowed if detitled and post -1976
Limit of 15% use for Business
Land limited to 35% of value of property
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

Loan Criteria:
Loan limit of $237,031
30-year fixed rate loan, with no origination or discount points charged at closing
IRS recapture potential depending upon financing
Buy, build, rehab
Hazard insurance $1,000 deductible all peril; escrow for tax and insurance
Tribe must have approved legal procedures for evictions, priority of lien, leasing, and foreclosure

Underwriting Criteria:
Per HUD 184 guidelines (click here )
LTV cannot exceed 97.75 or 98.75 of appraised value

Down payment Sources:
Must be approved HUD source (NHS, HRDCs, local governments)

Mortgage Insurance Information:
Requires HUD 184 coverage

Lender Reservation Process:

PREFER
 Input on Lender On Line web based reservation system

OR
Fax reservation to MBOH including:
 Reservation cover sheet and required documentation listed

Special Reservation Criteria

Must submit HUD 184 approval documentation to MBOH before reservation can be approved.

updated 5/10/2007

This is a summary of the MBOH program only. For a complete copy of the terms and conditions see Mortgage Purchase and Servicing Guide and the Terms and Conditions of the set-aside