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HUD 184 - Indian Home Loan Guarantee

 Today I want to do a deep dive on HUD 184, or the Housing and Urban Development's home loan guarantee program for Native American borrowers!

A "home loan guarantee" doesn't mean that you're guaranteed the loan (wouldn't THAT be nice lol!), it means that HUD will guarantee the bank reimbursement if something happens and the lender forecloses. They take the risk from the lender to open more doors and help potential home buyers have more options for mortgages. Other advantages include:

- down payment required of only 2.25% is for loans over $50,000 (not the 20% you've been told)

- low-interest rates that aren't based on credit score, but on the best market rate

- manual underwriting means the lender can have discussions about things like debt to income or credit score rather than yes or no approvals based on what's on paper

- lower mortgage insurance than the typical PMI if your down payment is under 20%

To qualify for a HUD 184 in Minnesota, you have to be an enrolled member of a federally recognized tribe (11 of them are in MN, but you can be from any in the country), and while some tribes or states restrict where you can buy, MN allows any county in the state. You have to use an approved lender, who should be vetted to be non-predatory (but it never hurts to shop around and compare rates and fees at a couple different places!). You can use it to buy, build, or refinance a home. 

This is just one of many tools and options you can utilize when looking for a home. HUD 184 is especially good for buying on Native land when dealing with tribal trust or lease land, which we'll dive into in another post. They know the ins and outs of rez buying and can be a great resource and partner for you in the process.

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