In response to the lack of mortgage capital in Indian Country, Congress established the Section 184 Indian Housing Loan Guarantee Program to expand homeownership opportunities for eligible tribes, Indian Housing Authorities, and tribal members seeking to own a home on native lands. Since the U.S. government holds much of the land in Indian Country in trust for the benefit of a particular tribe or tribal member, this land cannot be mortgaged unless the Bureau of Indian Affairs (BIA) approves of the placement of a leasehold mortgage on the improvements.

Thanks to the efforts of Native American tribes, their housing authorities, private lenders and the Office of Native American Program's Office of Loan Guarantee (OLG), over 1,000 homeownership loans have been made in Indian Country. These loans have extended homeownership, property rehabilitation, and new construction opportunities to tribal members, Native American tribes, and Indian Housing Authorities seeking to own a home on their native lands.
OLG, which administers the Section 184 Program, has guaranteed more than $122 million in private loans for homeownership. Over the years, the Section 184 Program has provided loan guarantees for as low as $12,500 in Wisconsin and up to $317,400 in Alaska.  The average loan amount is $95,190.

As of December 31, 2002, a total of 1,183 loans have been made across the U.S.  South Dakota has been among the leaders in implementing the Section 184 Program. With 88 loans guaranteed, South Dakota ranks fourth nationwide with more than $5.4 million closed.

"There is a definite need for access to these types of funds throughout the nine South Dakota reservations," said Juel C. Burnette III, a Home Mortgage Consultant from Wells Fargo Home Mortgage.  "Wells Fargo is proud to offer the Section 184 program to help provide homeownership opportunities to qualifying residents."

For more information about HUD's Section 184 Program contact the Office of Native American Programs toll free at (800) 561-5913 or visit www.codetalk.fed.us/loan184.html.

This story was written in part by the Office of Native American Program and used with their permission.