HUD 184 Loans

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A HUD 184 Loan at Mabrey

A HUD 184 Loan, or a Section 184 Loan, is a government-backed loan guaranteed by the U.S. Department of Housing and Urban Development. It provides Native Americans (and Alaskan Native tribal members) easier access to mortgage financing. These loans can be used for property both on and off Native American reservations. HUD 184 Loans are fixed-rate mortgages available in terms of up to 30 years and can be used for purchasing an existing home, constructing a new home, rehabilitating a home or refinancing a home.

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Is a HUD 184 loan right for me?

If you are a Native American or Alaskan Native that is part of a federally recognized tribe, this mortgage features a low down payment, low interest rate and no mortgage insurance, which for some could be an ideal route to home ownership. These loans are lenient on credit and can be flexible depending on the borrower’s specific financial situation. While there are specific areas of the country these loans can be used in, borrowers do have the ability to use this loan to purchase a home on or off a reservation.

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Requirements

HUD 184 Loans are only available to Native Americans, Alaska Natives, tribes, tribally designated housing entities and Native American housing authorities. Tribes must be federally recognized for members to qualify.

A HUD 184 Loan features a low down payment of 2.25% for loans over $50,000 and 1.25% for loans under $50,000.

Mortgage insurance is not required with a HUD 184 Loan, but there will be a one-time 1% guarantee fee paid at closing that can be financed into the loan.

Mabrey's required minimum credit score for a HUD 184 Loan is 620.

The debt-to-income ratio, or DTI of a HUD 184 borrower must not exceed 41%, or 43% with compensating factors.

The maximum loan limit for a HUD 184 Loan varies by county. In 2023, in most areas of the U.S, the loan limit for a single unit home is $420,680—however the limit rises for 2-, 3- or 4-unit homes.

Not every county is approved for Section 184 Loans. While the loan is not limited to a home on a reservation, it must be located in an approved county or state. Check now.

This house must be your primary residence. No second homes, vacation homes or rental properties are allowed to be financed with a HUD 184 Loan. The home must also be modest in size and design.

If you are using a HUD 184 Loan to purchase or build a home on reservation land, you will need a lease from the Tribe who holds the land so a leasehold estate can be created.

Benefits of a HUD 184 Loan

Low down payment
Low interest rate based on the market, not on a credit score
Small loan guarantee fee, no mortgage insurance
Flexible qualification guidelines
Can be used to build, rehabilitate, purchase an existing home or refinance a home
Can be used on or off of a reservation

HUD 184 Loan FAQs

Can a HUD 184 Loan be used for remodeling?

It depends. A HUD 184 Loan can be used for “rehabilitating” a home which includes weatherization and making the home livable and contemporary while preserving the structure of the home. A remodel, on the other hand, can often change the home’s structure or layout. Speak to a Mabrey Mortgage expert to find out if your home project qualifies for a HUD 184 Loan.

Do HUD 184 Loans carry PMI?

No. One of the benefits to a HUD 184 Loan is that there is no mortgage insurance. However, there is a one-time guarantee fee that must be paid at closing but can be financed into the term of the loan. That fee is 1% of the purchase price of the home. As of July 1, 2023, there is no annual guarantee fee associated with a HUD 184 Loan.

Can you rent a HUD 184 financed home out?

Rental properties are not eligible for a HUD 184 Loan. However, if the borrowers live in one unit of a multi-unit home financed by a HUD 184 Loan, they can then rent out the other units.

How do I apply for a HUD 184 Loan?

Verify that you are a Native American or Alaskan Native that is a member of a federally recognized Tribe. You will also need to ensure that the state and county you are purchasing in is HUD 184 eligible. Once you have verified both items, visit our application site to begin your loan inquiry.