A home loan benefit reserved for members of Native American and Alaskan tribes.

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. This loan is insured by the U.S. Department of Housing and Urban Development and issued by a participating lender like Scissortail Financial. This government guaranteed loan allows more flexible and lenient qualifying guidelines with attractive benefits for native borrowers. The Section 184  loan provides tribal home buyers with a very small down payment, significantly reduced mortgage insurance, and flexible guidelines for qualification among its many other advantages.

Not sure if you qualify? Want to compare a Section 184 loan to other programs to be sure you are getting the perfect home loan? Our loan advisors at Scissortail Financial Home Loans can go over the Section 184 guidelines so you can rest easy knowing that the Section 184 loan is a superior program established in recognition of your tribal membership.

• 97.75% Financing available with only a small 2.25% down payment for loans over $50,000
• Lower monthly and upfront mortgage insurance requirements
• Seller may pay up to 6% of the home’s purchase price towards your closing costs
• Higher loan amounts up to $472,030
• Competitive interest rates based upon the market not your credit score
• Streamline refinance options
• Relaxed qualification criteria

Qualifying for a Section 184 mortgage loan

American Indians or Alaska Natives who are members of a federally recognized tribe, federally recognized Indian tribes, tribally designated housing entities, and Indian Housing Authorities are eligible borrowers for the Section 184 loan with suitable credit, adequate income, and proof of tribal enrollment status. The most common way to verify enrollment status is with a CDIB card (Certificate of Degree of Indian Blood) or a letter directly from the tribe proving your enrollment status.  Section 184 home loans must be made in an eligible Section 184 area. The program has grown to include eligible areas beyond tribal trust land. The entire state of Oklahoma has full Section 184 approval and is eligible.

Great for home buyers

The Section 184 loan stands apart from other mortgage programs for its combination of low rates, reduced down payment, aggressive underwriting, and mortgage insurance benefits.

Tribal members purchasing their first homes can qualify for more home thanks to a reduced down payment and less expensive mortgage insurance. A reduced down payment helps tribal members buy a home with less cash compared to many other loans.

Refinance Advantages

Borrow up to 97.75% of your home's value to do a rate and term refinance and get the money you need to reduce the interest rate or term of your existing non Section 184 mortgage. Many tribal members also will use this loan option to refinance away from an expensive monthly mortgage insurance loan program like a FHA or Conventional loan to reduce their mortgage insurance costs provided by the Section 184 loan. 

You can also take advantage of today’s low rates before they go up further with a Section 184 streamline refinance. If you currently have a Section 184 loan and wish to reduce the interest rate or term of your loan, the streamline refinance is an easy option. No appraisal, income, or asset verification is required.

The Section 184 mortgage program allows refinancing flexibility to help you achieve the financial security you seek without all the red tape. More options lead to peace of mind without all the restrictions of other loans. If you would like to use the home’s equity to pay off other debts or for cash in hand (up to $25,000) the Section 184 program will allow you to borrow up to 85% of your home’s appraisal value. Consolidate your credit card debt into one lower monthly payment or use your home’s equity to improve your home using this option.

Here's the native borrower’s favorite benefits of a Section 184 home loan.

Reduced down payment when you purchase a home

Most mortgage programs require you to make a sizable down payment to buy a home. The Section 184 home loan is an exception. Rather than paying 5, 10, 20 percent or more of the home's purchase price upfront with your personal cash, with a Section 184 loan you can finance up to 97.75 percent of the purchase price. This means only a small down payment of 2.25 percent is needed.  This program will also allow a family member to gift you this down payment for added flexibility.

Reduced monthly mortgage insurance for Section 184 loans

Typically, lenders require you to pay for mortgage insurance if you make a down payment that's less than 20 percent. This insurance, which is also known as private mortgage insurance (PMI) for a conventional loan and a mortgage insurance premium (MIP) for an FHA loan, protects the lender if you default on your loan. Section 184 home loans provide the tribal member with significantly reduced mortgage insurance as another benefit. That makes this a Section 184 mortgage very affordable and reduces your payment compared to the mortgage insurance costs of a FHA or conventional loan.

Streamlined Refinance

The Section 184 mortgage offers a Streamlined Refinance to lower the interest rates of many tribal members without having to re-qualify. The Section 184 mortgage is an incredible program that honors tribal members.

85% Cash Out Refinance

Some loan programs limit you to 80 percent when you want to refinance equity out of your home.  The Section 184 cash out refinance will all you to take out 85% of your homes equity to meet your personal needs, consolidate debt, complete home repairs and upgrades, pay off student loan debt, or save for retirement. Refinance using the Section 184 ’s lenient guidelines and reduce your monthly mortgage insurance requirements with a Section 184 loan.

Section 184 loans have a government guarantee

There's a reason why the Section 184 loan comes with such favorable terms. The federal government guarantees that a portion of the loan will be repaid to the lender even if you're unable to make monthly payments for whatever reason. This guarantee encourages and enables participating lenders like Scissortail Financial to offer Section 184 loans with exceptionally attractive terms to borrowers that want them.

Larger loan amounts

In the state of Oklahoma, the maximum 2023 Section 184 loan amount is $472,030.  Section 184 mortgages are a top benefit for tribal members because they have more flexible requirements like higher loan amounts.

No prepayment penalty

A Section 184 loan won't restrict your right to sell your home if you decide you no longer want to own it. There’s no prepayment penalty no matter when you decide to sell your home, pay off your loan with a refinance, or completely pay off the existing loan balance with your personal funds.

Flexibility and options

A Section 184 loan must be used to purchase a primary residence. It can be used to buy a house, condo, new-built home, manufactured home, duplex or other types of properties. Or, it can be used to refinance your existing mortgage, make repairs or improvements to your home, or make your home more energy efficient.

Easy to qualify for a Section 184 home loan

Like all mortgage types, Section 184 loans require specific documentation, an acceptable credit history and sufficient income to make your monthly payments. But, as compared to other loan programs, Section 184 loan guidelines tend to be more flexible. In some situations, a tribal member can be approved that has no credit score as long as they can fulfill the acceptable alternative credit requirements. This is made possible because of the Office of Loan Guarantee within HUD’s Office of Native American Programs. The U.S. Department of Housing and Urban Development genuinely wants to make it easier for tribal member to buy a home or refinance.

SECTION 184  loans are assumable

Section 184 Loans are assumable which means the mortgage can be transferred from the original borrower to a new borrower if the property is sold, if the new borrower meets Section 184 Program eligibility requirements.  Most mortgages are not assumable so this is a relatively unique feature of Section 184 Loans.  By enabling borrowers to offer attractive loan terms to potential home buyers through an assumable loan, Section 184 Loans can help support property values.

It’s important to know your Section 184 home loan benefits. The Section 184 loan is worth a serious look when you are comparing other financing types for a home loan.  You can talk with a Scissortail Financial Section 184  loan specialist about what might be possible at 918-495-3773.