Buying A Home On Tribal Land: Find Out How A Section 184 Home Loan Lender Can Help

While the traditional home buying process can be confusing enough for many people, this process can quickly become even more complex when purchasing a home on Native American or Alaskan tribal land. This is because much of this land is held in trust by the US government in order to prevent private owners from seizing the land and ultimately removing it from the control of the tribe. This fact can make it virtually impossible for a prospective home buyer to secure mortgage financing through a traditional lender since the lender will be unable to foreclose and seize the land if the loan is not repaid as agreed. This is where the services of a Section 184 home loan lender can be beneficial.

What is a Section 184 home loan?

If you are not familiar with this classification of home loans, Section 184 home loans are federally guaranteed loans that are made available to registered members of either a Native American or Alaskan tribe. 

How do Section 184 home loans work?

These home loans are rather similar to traditional mortgages in the fact that they are used to secure financing for the purchase of a home. However, in addition to limiting eligibility to registered tribe members, these loans also limit who the land can be resold to in the event of foreclosure. By ensuring that lenders are only able to resell the property to a qualifying tribe member or tribal authority, these loans effectively protect the land from being developed by private investors.

Do you have to live on the reservation to qualify for a 184 loan?

In short, the answer to this question is no. While the majority of Section 184 loans are made for the purchase of homes that are located on a Native American or Alaskan reservation, tribes have the ability to designate other areas as qualifying tribal land for members who wish to live off the reservation. As long as the land is owned by the tribe, the land can be designated as being eligible for a 184 home loan.

Do all lenders offer Section 184 home loans?

Not all mortgage lenders will offer this type of home loan. If you are looking to secure this type of loan for the purchase of your new home, it is best to look for a lender in your area that specializes in Section 184 loans since the requirements and restrictions included in the processing of these loans can be a bit complex. These lenders will be able to help you get through the process with ease while coordinating with all of the necessary agencies in order to get you the financing that you require.