HUD 184 Program for Native Americans and Tribes

Tailored to the unique needs of Native Americans, the HUD 184 Program offers mortgage loans for homeownership, including rental properties and single-family homes. With over 150 participating lenders, the program provides opportunities for individuals enrolled in a Federally Recognized Tribe to access financing for various property types, promoting homeownership within Tribal communities.

• Native Americans
• HUD 184 Program
• Mortgage Loans
• Homeownership
• Tribal Communities

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2. Presented by Tanya Krueger Vice President Bay Bank Green Bay, WI tanya.krueger@baybankgb.com 920-490-7600 www.baybankgb.com Bay Bank is owned by the Oneida Nation Bay Bank is an approved HUD 184 Lender We are the largest HUD 184 originator and servicer in the Great Lakes area Tanya is an enrolled member of the Oneida Nation 2

3. Government to government relationships Unique land status Tribal Trust Land Allotted Trust Land Unrestricted Land Underserved markets Non-traditional credit Limited access/exposure to financing 3

4. A varied housing market Location Income (per cap income) (non-taxable income) Appraisal & Title Issues Tribe and Housing Authority borrow to increase Housing opportunities on and off reservation 4

5. 1992 Housing and Community Development Act Annual funding by Congress Nationwide Program 5

6. Mortgage Loan for Native Americans, Tribes and Housing Authorities Individuals enrolled in a Federally Recognized Tribe Homeownership Tribes or Housing Authorities Rental, resale Single Family Homeownership Townhome; Condominiums (FHA Approved) Manufactured/Modular on permanent foundation Site/stick built home 6

7. HUD 184 Program Staff Lenders Over 150 participating Lenders Tribes Bureau of Indian Affairs 7

8. HUD Develops and Implements Policy Conducts Training and Marketing Underwrites the Loan Issues the loan guarantee certificate Lender Initial contact with the applicant Liaison between HUD and applicant Lends the money Processes and prepares the mortgage loan package 8

9. Apply for the Mortgage Loan through participating lender Lender obtains income/credit documentation to determine eligibility (pre-approval) 9

10. New Homeowner: Buy a home Build a new home Rehabilitate an existing home Requirement of the FHA appraisal Minimum home improvements of $10,000 Wish list but supported in the FHA appraisal value 10

11. Current Homeowner Refinance to lower interest rate Refinance and take cash out (equity) Rehabilitate existing home 11

12. THE TRIBE OR TDHE AS BORROWER THE TRIBE OR TDHE AS BORROWER 12

13. Limited Housing Supply Low turnover, vacancy rate Limited availability of developed lots Limited sales Modest homes Tribal developers Financing generally grant based Limited exposure/access to financial markets Subsidies Construction (grants, guarantees, interest rate) Down payment & closing costs 13

14. When the Tribe or TDHE borrowers for the construction/purchase of rental property, they must demonstrate: Property management skills Rental and maintenance plan Renters able to pay 14

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17. These properties are eligible for assumption by qualified borrowers: Tribe/TDHE pays cash investment and loan payments during construction Qualified Borrowers able to assume After qualifying assumption, Tribe or TDHE is released from liability 17

18. Demonstrated ability to pay mortgage loan: Credit History (Dunn & Bradstreet) Sources of funds to close Income Liabilities 18

19. Coverage of debt service Skills, experience to undertake project Demonstration of need Marketing plan Audited financial statements 19

20. Evidence of authority to borrow Evidence of ability to obtain deficiency judgment Plans for projects exceeding 20 homes must be built in phases 20

21. Mortgage loan designated specifically for Native Americans National Loan Program 23 entire states On/off reservation Fee simple land (on or off reservation) Tribal trust with an executed lease Individual allotment Individual ownership Fractionated ownership 21

22. Manual Underwrite by HUD No Credit Scoring NOTE: Applicants must have acceptable Credit Non-traditional credit acceptable Market interest rate Reduced monthly mortgage insurance Minimum down payment 1.25% if $49,999 or less 2.25% if $50,000 or more Seller contribution (up to exceed 6%) 100% of the cash requirement can be paid by an acceptable gift source Tribe Housing Authority Family 22

23. Contact an approved Section 184 Lender Visit our website at: https://www.hud.gov/codetalk Questions: Section184@hud.gov 23