FEDERAL
AGENCY:
PUBLIC
AND INDIAN HOUSING, OFFICE OF NATIVE AMERICAN PROGRAMS, DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT
AUTHORIZATION:
Housing
and Community Development Act of 1992, as amended; Public Law 102-550;
106 Stat. 3739; 12.U.S.C. 1515z-13a.
To
provide homeownership opportunities to Native Americans, Tribes,
Indian Housing Authorities including Tribally Designated Housing
Entities (TDHEs), and Indian Housing Authorities on Indian land,
through a guaranteed mortgage loan program available through private
financial institutions.
TYPES
OF ASSISTANCE:
Guaranteed/Insured Loans.
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USES
AND USE RESTRICTIONS:
Mortgage
loans are for the acquisition or rehabilitation of existing homes,
purchase and rehabilitation of a home or construction of a new home.
The financial institution which originates the mortgage loan must
meet certain requirements noted in the law.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: The loan applicant must be a Native
American, which includes Alaska Natives, or an Indian Housing Authority
including a Tribally Designated Housing Authority (TDHE) or a Tribe
which meets certain requirements.
Beneficiary
Eligibility: The homeowner is the ultimate
beneficiary of the program. When the Indian Housing Authority,
TDHE or Tribe is the homebuyer, they may then rent the property.
In these cases, the person renting the home would be an indirect
beneficiary.
Credentials/Documentation:
Loan applicants must provide the lender with documentation on
eligibility, assets, income, debts and liabilities to show ability
to obtain and repay the mortgage loan.
APPLICATION
AND AWARD PROCESS:
Pre-application
Coordination: A Tribe must develop eviction,
foreclosure, and priority of lien procedures and adopt a residential
mortgage lease acceptable to HUD and the BIA for any property on
trust land within their jurisdiction to be eligible for this program.
The loan applicant must find an existing property or a builder to
construct a home. The proposed home site must be in an Indian area
as defined in the statute. This program is excluded from coverage
under E.O. 12372.
Application
Procedure: Applications are submitted to eligible
financial institutions. With the loan application, the homebuyer
must submit documentation such as pay stubs, W-2 forms (income
tax returns if self-employed), evidence of assets such as bank
accounts, and any other documentation requested by the lender
to support the applicant's ability to obtain and repay the mortgage.
The lender verifies the land status of the proposed property.
Award
Procedure: The financial institution obtains
and reviews all documentation and forwards it to HUD's Office
of Native American Programs. This Office is responsible for assuring
Tribal eligibility, land status, property acceptability and the
creditworthiness of the loan applicant. HUD has responsibility
for the approval or disapproval of the loan (the application for
loan guarantee). Eligible lenders may originate loans under the
Direct Guarantee Program. Direct Guarantee lenders underwrite,
approve and close the loan prior to submission to HUD for the
Loan Guarantee Certificate.
Deadlines:
None.
Range
of Approval/Disapproval Time: There are no
specific time requirements for the processing of these loans.
Appeals:
Applicants whose loans are disapproved may appeal the disapproval
if the applicant can provide additional documentation to resolve
the issues which lead to the disapproval.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: The loan amount is
calculated based on 97.75 percent of the appraised value of the
property if over $50,000 and 98.75 percent if the property is valued
at or under $50,000. The applicant must have sufficient assets in
cash (or their equivalent) to make the downpayment. The applicant's
total debts (including the mortgage loan) should not exceed 41 percent
of their income (unless valid compensating factors are presented).
Length
and Time Phasing of Assistance: The term of
the loan cannot exceed 30 years. The processing time varies from
time of application to the time the loan closes, but in general
will average from 30 to 120 days unless there are significant
land issues; then 6 to 12 months is possible.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Participating financial institutions must provide HUD with copies
of loan files and must report to HUD on the status of the loan,
once it has closed.
Audits:
Participating lenders, and closed loan files, are reviewed to
assure compliance with the program's requirements.
Records:
Copies of loans files are maintained by HUD. The lender that originates
the loan must maintain a copy of the loan file for 2 years after
loan closing. The lender that services the loan must maintain
the loan file for the life of the loan plus 3 years.
FINANCIAL
INFORMATION:
Account
Identification: 86-0223-0-1-371.
Obligations:
(Loans) FY 01 $1,192,110; FY 02 est $234,283,000; and FY 03 est
$197,242,798.
Range
and Average of Financial Assistance:
The average loan amount in fiscal year 2000 was $90,287;
the average loan amount in fiscal year 2001 was $109,763.
PROGRAM
ACCOMPLISHMENTS:
The first loan was guaranteed on March 1, 1995. At the end of fiscal
year 2001, 864 loans totaling $84,745,601 had been guaranteed.
REGULATIONS,
GUIDELINES, AND LITERATURE:
24 CFR Part 1005; a Guidebook and literature is available from HUD's
Office of Native American Programs.
INFORMATION
CONTACTS:
Regional
or Local Office: None. Inquiries should be addressed
to the Headquarters Office below.
Headquarters
Office: Paul S. Jurkowski, Director, Office
of Loan Guarantee, National Office of Native American Programs,
1999 Broadway, Suite 3390, Denver, Colorado 80202. Telephone:
1.800.561.5913.
Web
Site Address: http://www.codetalk.fed.us/loan184.html
EXAMPLES
OF FUNDED PROJECTS:
Not applicable.
CRITERIA
FOR SELECTING PROPOSALS:
Not applicable.
