Mortgage Lending

How a Section 184 loan works

The steps in HUD’s chart of the mortgage lending process in Indian Country.

1. Fee simple land

   Nothing restricts selling or mortgaging the land, so the land itself secures the loan.

   1. The lender confirms the home is in the tribe's approved Indian area for Section 184 lending.
   2. The lender orders title insurance and an appraisal, prepares the credit package and pre-approves you.
   3. The lender sends the underwriting package to HUD, receives HUD's commitment and closes the loan.
   4. The lender or closing agent files the loan documents with the County Recording Clerk.

2. Tribal trust land

   The land cannot be sold or mortgaged, so a lease on it secures the loan.

   1. The tribe asks the BIA for a Certified Title Status Report showing the leasehold, the legal description and any existing liens.
   2. The tribe approves the lease by resolution and sends it to the BIA, and the BIA Superintendent returns the approved lease.
   3. The lender reviews the signed lease, orders an appraisal, prepares the credit package, pre-approves you, receives HUD's commitment and closes the loan.
   4. The lender or closing agent files the loan documents with the BIA and the County Recording Clerk, and the BIA issues an Endorsement.

3. Allotted trust land

   The land cannot be sold or mortgaged freely, so the allottee documents their interest in the land to secure the loan.

   1. The BIA Realty Officer provides a Certified Title Status Report and a commitment to approve the mortgage.
   2. The lender prepares the credit package, orders an appraisal, pre-approves you and sends the underwriting package to HUD, and the BIA Credit Officer approves it.
   3. The lender receives HUD's and the BIA's commitments and closes the loan.
   4. The lender or closing agent files the loan documents with the BIA and the County Recording Clerk, and the BIA issues an Endorsement.