Program Overview

Barriers to Homeownership in Indian Country. Much of the land in Indian country is held in trust by the U.S. government for the benefit of a particular tribe or individual Native Americans. Land held in trust for a tribe cannot be mortgaged, and land held in trust for an individual must receive federal approval before a lien is placed on the property. As a result, tribes, IHAs/TDHEs, and individual Native American families have historically had limited access to private mortgage capital.

At the same time, demand for homeownership opportunities has steadily grown. Many families in Indian country have worked hard to achieve success, and now want to own a home of their own. Other Native Americans currently live away from traditional Indian lands and seek to return home to raise their families.

2.	The Section 184 Loan Guarantee Program.

In 1992 Congress created a federal program specifically designed to address the lack of mortgage capital in Indian country. Under the provisions of Section 184 of the Housing and Community Development Act of 1992 and as amended under the provisions of the Native American Housing Assistance and Self-Determination Act of 1996, the U.S. Department of Housing and Urban Development (HUD) was authorized to guarantee loans made by private lenders to Native Americans, IHAs/TDHEs and Tribes.

b.	The Loan Guarantee Program is intended to increase the availability of mortgage lending in Indian country and is restricted to Native Americans, IHAs/TDHEs and Tribes selecting home sites within an Indian area.