Carrington Mortgage Services’ Section 184 loans are a great option for Native American homeowners

Carrington Mortgage Services, LLC (CMS), one of the nation’s largest privately held non-bank lenders, boasts an impressive slate of loan offerings and services direct to consumers, investors, mortgage brokers and mortgage bankers nationwide. As part of its ongoing commitment to serve diverse homeowners, and to provide a needed offering for an often-overlooked homeowner audience, CMS is introducing Section 184 Loans for Native Americans for its retail lending customers.

“The Section 184 Loan is a great product, in part because the costs are low when compared to other loan programs,” said Greg Austin, EVP, Lending for CMS. “They're becoming more and more popular as Native Americans realize there’s a specific product out there designed for them – especially on tribal land.”

How does the Section 184 program work?

The Section 184 Loan Guarantee Program was created by the U.S. Department of Housing and Urban Development’s (HUD) Housing and Community Development Act of 1992 to address the lack of mortgage lending for Native Americans and Alaskan Native tribal members. According to HUD, Section 184 loans are available to American Indians or Alaska Natives who are enrolled members of a federally recognized Tribe, Alaska Village or Regional Corporation. These home loans are guaranteed 100% by the Office of Loan Guarantee within HUD’s Office of Native American Programs to encourage lenders like CMS to provide mortgage loans to Native Americans. For a home loan on tribal trust land, eligible borrowers lease the land from the tribe for 50 years. Currently, Section 184 home mortgage loans are fully available in 24 states, including Oklahoma, Arizona, Colorado, Kansas, New Mexico and Utah. In 14 states, including Texas, New York and Connecticut, the loans are only available in certain counties and cities.

The advantages of a Section 184 Loan

Loans offered through this program require a low minimum down payment – generally 2.25%, or as low as 1.25% for loans of less than $50,000. In addition, the program utilizes a hands-on approach to underwriting and approval, as opposed to using automated decision-making tools. For loans closed on or after July 1, 2023, there is no longer an Annual Loan Guarantee Fee. Section 184 loans can only be used for single-family homes (1-4 units) and for a primary residence.

“In certain cases, Native American homeowners may use gift funds or benefit from approved closing cost assistance programs,” said Austin. “This program can really help a qualifying customer purchase or refinance a home more easily. It is important that Native Americans have equal access to the American dream of homeownership; and at Carrington, we are proud to help these deserving homeowners find a great home using a program created for their unique needs.”

Diverse Solutions for Today’s Homebuyers

Without question, homeowners and mortgage professionals are demanding, now more than ever, what Carrington has brought to the mortgage marketplace from the very beginning: innovative loan products, leading-edge technology, operations transparency and dedicated training and support systems for loan originators. In addition to Carrington’s comprehensive suite of non-QM offerings, FHA, VA, USDA and conforming Conventional products, the company also offers ProcessIQ℠, where approved CMS Wholesale brokers have the option of having Carrington process the loan as part of its underwriting. When enrolled brokers submit loans, they can request that the Carrington ProcessIQ team handle all non-licensable aspects of the processing, working directly with the borrower. In December 2022, CMS’ Second Lien program began providing a welcome source of liquidity to existing CMS servicing customers. In July 2023, CMS expanded its offerings to include 40-year loans and temporary buydowns. In March 2024, CMS introduced a Closed-End Fixed-Rate Second Lien product for its wholesale and correspondent lending customers. And in early April 2024, CMS introduced ITIN loans through its retail, wholesale and correspondent lending channels.

The Carrington Companies

Carrington is a holding company whose primary businesses include asset management, mortgages and real estate transactions. Collectively, the businesses are fully integrated, and provide a broad range of real estate services encompassing nearly all aspects of single-family residential real estate transactions in the United States. To read more visit: www.carringtonhc.com.

Through its collective associates made up of Carrington leaders and employees, the company’s nonprofit organization, Carrington Charitable Foundation, contributes to the community through causes that reflect the interests of Carrington Associates. For more information about Carrington Charitable Foundation, and the organizations and programs it supports through specific fundraising efforts, please visit: carringtoncf.org.

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