HUD Takes a Major Step to Boost Homeownership in Tribal Communities

Enhanced home loan program helps to further the homeownership dream for Native American families.

WASHINGTON - Today, the U.S. Department of Housing and Urban Development (HUD) announced a final rule that will increase lender participation in the Section 184 Indian Housing Loan Guarantee (Section 184) program, strengthen regulations to meet the program’s growing demands, and ensure that the program will remain a vital resource for Native American families looking to become homeowners for years to come. HUD worked closely with Tribal leaders and other stakeholders to reinforce the program, designed to bolster homeownership across Indian Country. HUD’s Principal Deputy Assistant Secretary for Public and Indian Housing, Richard Monocchio made the announcement in Indian Country while meeting with Tribal leaders across Oklahoma.

Homeownership is key to building generational wealth. By enhancing the Section 184 program, we are ensuring homeownership and wealth-building opportunities are available to Native American borrowers,” said HUD Acting Secretary Adrianne Todman. “Today’s announcement emphasizes the Biden-Harris Administration’s dedication to strengthening the Nation-to-Nation relationship with Tribes and making key investments in Indian Country.

Section 184 loans can be used for new construction, rehabilitation, the purchase of an existing home, or to refinance. For example, an American Indian or Alaska Native family can utilize the program to purchase their first home, or Tribes can use the program to finance the construction of new housing for their communities.

“Since its inception, the Section 184 program has guaranteed over $10 billion in mortgage loans to Native American homebuyers. “The Section 184 program is a vital tool to so many Native American homebuyers. The new regulations will bring additional transparency and predictability to this important program and is another example of the actions this Administration has taken to expand homeownership opportunities,” said Principal Deputy Assistant Secretary Richard Monocchio.

HUD’s Section 184 program allows eligible borrowers with a range of incomes the opportunity to purchase, rehab, or build quality housing on or off Tribal lands by guaranteeing home mortgages provided by private lenders. The program is synonymous with Tribal homeownership because of flexible underwriting requirements, minimal down payments, and reduced fees. The updated regulations build on past program successes, increase Native American borrower protections, and encourage new lender participation to broaden access to mortgage capital in Indian Country.

View the Strengthening the Section 184 Indian Housing Loan Guarantee Program final rule.