BENEFITS OF THE 184 LOAN GUARANTEE PROGRAM

If you have any questions, please contact Housing Manager Tara Blue, or Robin Jacobs at (910) 521-7861.

• Available on tribal trust, individual allotted trust or fee simple land in an Indian operating area
• Low down payment of 1.25% to 2.25% based on the lower of the appraised value or cost to acquire the home
• Refinance eligibility
• The maximum loan is 150% of the FHA mortgage limit subject to appraised value and down payment requirements
• 1% financeable guarantee fee at closing (no private mortgage insurance or monthly MIP). It is the lowest cost of any government guarantee or conventional insurance program in Indian country. There is no monthly premium for a 184 loan.
• Eligibility includes: New construction, rehabilitation, and purchase of an existing house
• One qualifying ratio: 41% total debt to gross income ratio which can be exceeded with compensating factors
• Single close construction (permanent) loan where only one closing is required. Monthly mortgage payments begin after closing. At closing the amount allocated for construction or rehabilitation plus a 5-10% contingency and up to 6 months mortgage payments are placed in an escrow account and are drawn down as the work is satisfactorily completed
• 100% guarantee to the lender in the event of a foreclosure and claim
• A strong secondary market exists: Fannie Mae, Freddie Mac, FHLB of Seatte, Ginnie Mae, and some state housing finance agencies
• Loans may be assumed by a creditworthy borrower that meets program eligibility

Participating lenders:

• First Bank
• First South
• Lumbee Bank
• Progressive
• Wells Fargo
  

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