Public and Indian Housing_Indian Loan Guarantee Program


To provide homeownership opportunities to Native Americans, Tribes, Indian Housing Authorities including Tribally Designated Housing Entities (TDHEs), and Indian Housing Authorities on Indian land, through a guaranteed mortgage loan program available through private financial institutions.

General information about this opportunity
Last Known Status
Program Number
Federal Agency/Office
Agency: Department of Housing and Urban Development
Office: Office of Public and Indian Housing
Type(s) of Assistance Offered
Program Accomplishments
Fiscal Year 2014: The program guaranteed 4,110 loans. Fiscal Year 2015: The program projects to guarantee 4,863 loans. Fiscal Year 2016: The program projects to guarantee 5,776 loans.
Housing and Community Development Act of 1992, Public Law 102-550, 12 U.S.C 1515z - 13a.
Who is eligible to apply/benefit from this assistance?
Applicant Eligibility
The loan applicant must be members of a federally recognized Indian tribe, band or community, which includes Native Americans, Alaska Natives, or an Indian Housing Authority including a Tribally Designated Housing Authority (TDHE) or a Tribe which meets certain requirements. Applicant eligibility is validated by current enrollment in a federally recognized tribe.
Beneficiary Eligibility
The homeowner is the ultimate beneficiary of the program. When the Indian Housing Authority, TDHE or Tribe is the homebuyer, they may then rent the property. In these cases, the person renting the home would be an indirect beneficiary.
Loan applicants must provide the lender with documentation on eligibility, assets, income, debts and liabilities to show ability to obtain and repay the mortgage loan. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.
What is the process for applying and being award this assistance?
Pre-Application Procedure
Preapplication coordination is required. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.
Application Procedure
This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. Applications are submitted to eligible financial institutions. With the loan application, the homebuyer must submit documentation such as pay stubs, W-2 forms (income tax returns if self-employed), evidence of assets such as bank accounts, and any other documentation requested by the lender to support the applicant's ability to obtain and repay the mortgage. The lender verifies the land status of the proposed property.
Award Procedure
The financial institution obtains and reviews all documentation and forwards it to HUD's Office of Native American Programs. HUD sends the Section 184 Loan Guarantee Firm Commitment Form to the Lender if the mortgage meets the Section 184 Program underwriting criteria. The financial institution is responsible for assuring Tribal eligibility, land status, property acceptability and the creditworthiness of the loan applicant. HUD has responsibility for the approval or disapproval of the loan (the application for loan guarantee). Eligible lenders may originate loans under the Direct Guarantee Program. Direct Guarantee lenders underwrite, approve and close the loan prior to submission to HUD for the Loan Guarantee Certificate.
Not Applicable.
Approval/Disapproval Decision Time
From 1 to 15 days. There are no specific time requirements for the processing of these loans.
From 15 to 30 days. Applicants whose loans are disapproved may appeal the disapproval if the applicant can provide additional documentation to resolve the issues which lead to the disapproval.
Not Applicable.
How are proposals selected?
Not Applicable.
How may assistance be used?
Mortgage loans are for the acquisition or rehabilitation of existing homes, purchase and rehabilitation of a home or construction of a new home; and refinancing of existing debt. The financial institution which originates the mortgage loan must meet certain requirements noted in the law.
What are the requirements after being awarded this opportunity?
Participating financial institutions must provide HUD with copies of loan files and must report to HUD on the status of the loan, once it has closed. No cash reports are required. Progress reports are part of the reporting process described above. Expenditure reports are not applicable. Performance monitoring is also part of the reporting process described above.
In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. Participating lenders and closed loan files are reviewed to assure compliance with the program's requirements.
Copies of loan files are maintained by HUD. The lender that originates the loan must maintain a copy of the loan file for 2 years after loan closing. The lender that services the loan must maintain the loan file for the life of the loan plus 3 years.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formulas are not applicable to this program.
Matching requirements are not applicable to this program.
MOE requirements are not applicable to this program.
Length and Time Phasing of Assistance
The term of the loan cannot exceed 30 years. The processing time varies from time of application to the time the loan closes, but in general will average from 30 to 120 days unless there are significant land issues. See the following for information on how assistance is awarded/released: This is a loan guarantee program. Therefore assistance is given in the form of a guarantee. No funds are awarded or released unless there is a default on a guaranteed loan.
Who do I contact about this opportunity?
Regional or Local Office
Headquarters Office
Thomas C. Wright, 451 7th Street, S.W., Room 5156, Washington, District of Columbia 20410 Email: Phone: (202) 402-4978
Website Address
Financial Information
Account Identification
(Guaranteed/Insured Loans) FY 14 $708,799,000; FY 15 est $851,000,000; and FY 16 est $1,150,793,000
Range and Average of Financial Assistance
The average loan amount in FY 2014 was $172,000.
Regulations, Guidelines and Literature
24 CFR Part 1005; a Guidebook and literature is available from HUD's Office of Native American Programs.
Examples of Funded Projects
Not Applicable.


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