All borrowers must meet the credit and underwriting standards of the program. An IHA or tribe may borrow funds guaranteed under Section 184 to develop single family homes that are subsequently sold to eligible borrowers or to create tribally owned rental housing. To establish this legal and administrative framework, tribes must have adopted foreclosure, eviction and priority of line procedures that will apply to Section 184 loans wherever the tribal court has legal jurisdiction. The term of the loan may not exceed 30 years. Interest rates are set by the lender, must reflect the current market and cannot be adjustable.
Prospective borrowers apply for a loan through the private lender of their choice.
The lender prepares the loan application and submits it to the Loan Guarantee Office in Denver for approval.