Frequently Asked Questions (FAQs) about the Section 184 Loan

 

1.   What is the Section 184 Loan Guarantee Program?

The Section 184 Loan Guarantee Program was created by the Housing and Community Development Act of 1992 to address the lack of mortgage lending in Indian Country.  The Section 184 Loan Guarantee Program offers a loan guarantee to private sector lenders who make mortgage loans to eligible borrowers for homes located in Indian Country.

2. What are the some of the advantages of the Section 184 Loan Guarantee Program?

 

• Low down payment

• Fixed interest rate

• Eligibility to refinance existing loans

3.  Who can participate in the Section 184 Loan Guarantee Program?

In order to participate in the Section 184 Loan Program as a member of the Lumbee Tribe of North Carolina, tribal members must be currently enrolled and must use the loan within the area of the State of North Carolina.

4.  May I apply for the Down Payment Assistance Program and the Section 184 Loan Guarantee Program?

Yes.  However, you may not apply for both Down Payment Assistance and Homeownership.

 

5. Are 184 Loans interest free?

No, fixed interest rates are applied by the participating lender.

 

6. Do I have to build a house with this program or may I buy an existing house?

You may use the Section 184 Loan for new construction, rehabilitation, or purchase of an existing house.

 

7. Is there a credit check with the Section 184 Loan Program?

Yes, participating lenders will determine credit worthiness in the same manner as usual for other prospective home buyers.