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For Borrowers For Tribes and TDHEs For Lenders

 

NEW! Dear Lender Letter 2021-03Section 184A Financing of Homes Located on Agricultural and Pastoral
Lots on Hawaiian Home Lands

This Dear Lender Letter (DLL) announces policy established by the Office of Native American Programs (ONAP) for the Section 184A Loan Guarantee Program regarding financing of homes located on agricultural and pastoral lots on Hawaiian home lands.


Dear Lender Letter 2021-02 

The purpose of this Dear Lender Letter (DLL) is to inform Lenders of further extensions for the foreclosure and eviction moratoriums, loan processing flexibilities, and the Borrower’s ability to request a COVID-19 Forbearance. This DLL also broadens Borrower eligibility for COVID-19 Loss Mitigation Options and expands COVID-19 Forbearance periods for certain Borrowers.  The DLL extends the foreclosure moratorium under the Section 184 and Section 184A programs through June 30, 2021.  Continue Reading


Dear Lender Letter 2021-01Extension of foreclosure and eviction moratorium and loan processing flexibilities in connection with the Presidentially Declared COVID-19 National Emergency.

The purpose of this Dear Lender Letter (DLL) is to inform lenders and servicers of an extension to the foreclosure and eviction moratorium originally issued in DLL 2020-04, extended in DLL 2020-06, DLL 2020-08, DLL 2020- 10, and further extended in DLL 2020-13 for borrowers with Section 184 or Section 184A guaranteed loans for an additional period through March 31, 2021.

This DLL also announces an extension of the loan processing flexibilities originally issued in DLL 2020-05; extended in DLL 2020-06, DLL 2020-08, and DLL 2020-10; modified and extended in DLL 2020-12; and further extended in DLL 2020-13 for an additional period through March 31, 2021. This extension will allow industry partners additional opportunity to utilize flexible guidance related to re-verification of employment and appraisal protocols for the Section 184 and 184A programs affected by COVID-19.  Continue Reading


Dear Lender Letter 2020-13- Extension of foreclosure and eviction moratorium and loan processing flexibilities in connection with the Presidentially Declared COVID-19 National Emergency.

The purpose of this Dear Lender Letter (DLL) is to inform lenders and servicers of an extension to the foreclosure and eviction moratorium originally issued in DLL 2020-04, extended in DLL 2020-06 and DLL 2020-08, and further extended in DLL 2020-10 for borrowers with Section 184 or Section 184A guaranteed loans for an additional period through February 28, 2021.

This DLL also announces an extension of the loan processing flexibilities originally issued in DLL 2020-05, extended in DLL 2020-06, DLL 2020-08, and DLL 2020-10, and modified and further extended in DLL 2020-12, for an additional period through February 28, 2021. This extension will allow industry partners additional opportunity to utilize flexible guidance related to re-verification of employment and appraisal protocols for the Section 184 and 184A programs affected by COVID-19. Continue Reading

Dear Lender Letter 2020-12 - Extension of Re-verification of Employment and Tax Transcript Flexibilities and Updated Appraisal Flexibilities in Connection with the COVID-19 National Emergency

The purpose of this Dear Lender Letter (DLL) is to inform lenders and servicers of an extension of the re-verification of employment and IRS tax transcript flexibilities originally issued in DLL 2020-05, extended in DLL 2020-06 and DLL 2020-08 and further extended in DLL 2020-10, for an additional period through December 31, 2020.  This DLL will also provide an updated scope of work inspection option providing for Exterior-Only Appraisals, which limits face to face contact for certain Section 184 and 184A transactions affected by the COVID-19 National Emergency.


Dear Lender Letter 2020-11 - Section 184A Loan Limits

This Dear Lender Letter (DLL) announces a technical correction by the Office of Native American Programs (ONAP) to the Section 184A loan limit for properties located in Hawaii County.  This DLL is effective immediately for all Section 184A loans that do not have a 184A cohort number assigned as of September 9, 2020.

Program Overview

The Section 184 Indian Home Loan Guarantee Program is a home mortgage product specifically designed for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership and increase access to capital in Native American Communities.

With Section 184 financing borrowers can get into a home with a low down payment and flexible underwriting. Section 184 loans can be used, both on and off native lands, for new construction, rehabilitation, purchase of an existing home, or refinance.

Section 184 is synonymous with home ownership in Indian Country.

How Section 184 Works

The Office of Loan Guarantee within HUD’s Office of Native American Programs, guarantees the Section 184 home mortgage loans made to Native borrowers. The loan guarantee assures the lender that its investment will be repaid in full in the event of foreclosure.

The borrower applies for the Section 184 loan with a participating lender, and works with the tribe and Bureau of Indian Affairs if leasing tribal land. The lender then evaluates the necessary loan documentation and submits the loan for approval to HUD’s Office of Loan Guarantee.

The loan in limited to single-family housing (1-4 units), and fixed-rate loans for 30 years of less. Neither adjustable rate mortgages (ARMs) nor commercial buildings are eligible for Section 184 loans. Maximum loan limits vary by county. Click on the link below for the most current loan limits.

By encouraging lenders to serve Native communities, Section 184 is increasing the marketability and value of the Native assets and strengthening the financial standing of Native communities.

Eligible Borrowers

  • American Indians or Alaska Natives who are members of a federally recognized tribe
  • Federally recognized Indian tribes (Complete List as of 02/01/2020)
  • Tribally designated housing entities
  • Indian Housing Authorities

Native Hawaiians can access homeownership loans through the Section 184A Program.

Eligible Areas

Loans must be made in an eligible area. The program has grown to include eligible areas beyond tribal trust land. Click on the links below to determined participating States and counties across the country.

Section 184 Eligible Areas

Lender Participation

Borrowers must apply with a HUD-approved Section 184 lender. Approved lenders are listed below.

Resources

Additional homebuyer resources, including homebuyer classes, can be found at www.hud.gov/counseling.

Tribal Leaders Handbook on Homeownership (7/2018)

Homeownership Data from the Center for Indian Country Development Reservation Profiles Database (6/2018)

Alaska Rural Homeownership Resource Guide

BIA Contract Guide for Mortgage Lending (9/2016)