WASHINGTON – The U.S. Department of Housing and Urban Development (HUD) today unveiled a finalized rule aimed at boosting lender involvement in the Section 184 Indian Housing Loan Guarantee program. This rule is set to enhance the regulations to accommodate the increasing demands of the program, securing its role as a crucial support for Native American families aspiring to homeownership. In collaboration with Tribal leaders and various stakeholders, HUD has strengthened this initiative to promote homeownership throughout Indian Country. The announcement was made by HUD’s Principal Deputy Assistant Secretary for Public and Indian Housing, Richard Monocchio, during meetings with Tribal leaders in Oklahoma.
“Homeownership is crucial for creating generational wealth. With the improvements to the Section 184 program, we’re facilitating access to homeownership and opportunities for wealth building for Native American communities,” stated HUD Acting Secretary Adrianne Todman. She emphasized that today’s update reaffirms the Biden-Harris Administration’s commitment to enhancing the Nation-to-Nation relationship with Tribes and advancing significant investments in Indian Country.
The Section 184 loans are versatile, supporting new construction, rehabilitation, purchasing existing homes, or refinancing options. They enable American Indian or Alaska Native families to buy their first home or allow Tribes to finance new housing developments for their members.
“Since its establishment, the Section 184 program has secured over $10 billion in mortgage loans for Native American homebuyers,” remarked Richard Monocchio. “These new regulations will introduce greater transparency and predictability, strengthening this essential homeownership tool. This is part of ongoing efforts by this Administration to widen homeownership avenues,” he added.
The enhancements to HUD’s Section 184 program include broader eligibility for borrowers across various income levels to purchase, rehabilitate, or construct quality housing on or off Tribal lands through guaranteed home mortgages from private lenders. The program is known for its flexible underwriting standards, minimal down payments, and lower fees. The updated regulations aim to build upon the program’s successes, enhance borrower protections, and attract more lenders, thereby expanding mortgage access in Indian Country.
For more information, read the original press release from: https://www.hud.gov/press/press_releases_media_advisories/HUD_No_24_079