More than 400,000 Native Americans live in Arizona, putting it in the top three in the U.S. for Native population. It’s no wonder that it’s also the third most popular state for Section 184 Loans, according to HUD.
What is surprising is that more Native Americans don’t use the program. In fact, fewer than 3,000 have taken advantage of it in Arizona since the program started in 1992.
Here’s how you can use this benefit.
In this article:
- Benefits of an Arizona Section 184 Loan
- Eligible areas in Arizona
- Arizona Section 184 loan limits
- Arizona Section 184 calculator
- Who qualifies?
- Native American Tribes in Arizona
- Section 184 approved lenders
- Section 184 FAQ
- Start your Section 184 loan
- Infographic
Benefits of a Section 184 Loan in Arizona
The Section 184 Loan comes with huge benefits.
- 2.25% down payment
- Use down payment assistance and closing cost assistance
- No monthly mortgage insurance
- No credit score minimum
- Low interest rates
- Finance a home on or off reservations
- Purchase, buy, renovate, or refinance a home
- Easier qualification criteria than FHA or conventional
The Section 184 Loan offers flexible financing to encourage homeownership among Native people. That’s why only Native Americans are eligible. However, keep in mind that you must be an enrolled member of a federally-recognized Tribe. If you think you might qualify, it’s worth learning more about this powerful program.
Where in Arizona are Section 184 loans available?
The entire state of Arizona is eligible for the Section 184 Native American home loan.
Despite what you may have heard, it is available on and off reservations. So whether you plan to buy on Tribal trust land or in an off-reservation “fee simple” area, this loan comes with the same terms.
You can also buy in Arizona if your Tribe is not located in the state.
Who qualifies for a Section 184 Native American Home Loan in Arizona?
In Arizona or any state, you’ll need to meet certain requirements to be eligible for this loan.
Tribal membership: The lender will request a valid ID from a federally-recognized Tribe that is approved for the program. Note that not all Tribes are HUD-approved.
Primary residence: You must plan to live in the home as your primary residence.
Property type: You can buy a single-family residence (1 unit), or a duplex, triplex, or quadplex. Manufactured homes on a permanent foundation are also eligible.
Loan purpose: Buy, build, renovate, refinance a home, or place a manufactured home on a permanent foundation. You can also buy land if you’re ready to build on it.
Credit: Section 184 loans do not have a minimum credit score. However, you must have a reasonable credit history with no current judgments or other serious derogatory items.
Income: The lender will document two years of steady employment history. Your total housing payment plus all debt payments can be up to 41% of your gross income, or 43% for strong files.
Lease: If buying on reservation land, you must obtain a lease from the Tribe. You’ll also need a Title Status Report from your local BIA office.
Arizona loan limits
Section 184 loan limits vary by county. The standard limits in Arizona are:
- 1-unit: $420,680
- 2-unit: $538,650
- 3-unit: $651,050
- 4-unit: $809,150
Areas with higher housing costs also allow bigger loans. Arizona counties that offer higher limits are:
| County | 1-unit | 2-unit | 3-unit | 4-unit |
| COCONINO | $ 510,400 | $ 653,312 | $ 791,120 | $ 979,968 |
| MARICOPA | $ 467,200 | $ 598,016 | $ 724,160 | $ 897,024 |
| PINAL | $ 441,600 | $ 565,300 | $ 683,350 | $ 849,250 |
| YAVAPAI | $ 448,250 | $ 573,760 | $ 694,788 | $ 860,640 |
Keep in mind that you need to qualify for the loan based on your income and current debts. The lender will calculate your maximum loan amount, which may be lower than the county limit.
Arizona Section 184 Loan calculator
Most online mortgage calculators won’t give you an accurate estimate of Section 184 loan costs. These loans come with different down payments and mortgage insurance levels than other mortgages. We created a specific Section 184 calculator to help you plan.
>>See the Arizona Section 184 Calculator
Native American Tribes in Arizona
To be eligible for the program, your Tribe must be approved by HUD. The good news is that there are many Tribes that are approved. A good place to check your Tribe’s approval status is our Approved Tribes list.
Below is a list of approved Arizona Tribes as of December 2022 according to HUD. Check HUD’s website for current information.
- Cocopah Indian Tribe
- Colorado River Indian Tribes
- Fort McDowell Yavapai Nation
- Fort Mojave Indian Tribe
- Gila River Indian Community
- Hopi Tribe
- Hualapai Tribe
- Kaibab Band of Paiute Indians
- Navajo Nation*
- Pascua Yaqui Tribe
- Pueblo of Zuni
- Salt River Pima-Maricopa Indian Community
- San Carlos Apache Tribe
- Tohono O’odham Nation
- White Mountain Apache Tribe
- Yavapai-Apache Tribe
- Yavapai-Prescott Indian Tribe
If your Tribe isn’t listed, it still may be approved. Check your Tribe’s website, HUD’s website, and call Tribal leadership. Approval may be in process. Or, you may belong to an approved Tribe that is outside Arizona, in which case you are still eligible to use the loan inside the state.
Arizona Section 184 lenders
If you call just any lender, you might discover that they don’t offer this loan. In fact, only around 140 lenders nationwide do.
Of those, around 56 Section 184 lenders are licensed to do business in Arizona, according to HUD. This gives you plenty of options when shopping around.
Ask the lender you call how often they do Section 184 loans. They may not do very many of them. Also, ask to be directed to an individual loan officer that does these all the time. Some complex processes include working with your Tribe for leases and with BIA to obtain a title report (if buying on a reservation).
A loan officer that knows how to navigate these loans can help you close your loan and become a homeowner quickly.
Arizona Section 184 FAQ
Yes. The entire state is geographically approved. You can buy a home on or off reservations.
Yes, the Section 184 program has features that help first-time buyers, like low down payments and no credit score minimums. Repeat buyers can also use them.
These loans come with similar closing costs compared to other loans, which is equal to about 2-5% of the home’s price. There’s also a down payment requirement of 2.25%. You can pay for closing costs and the down payment with gift funds or homebuyer assistance.
Get started on your Arizona Section 184 Native American Home Loan
More Native Americans in Arizona are discovering the Section 184 home loan. They are using it to become homeowners and improve their futures.
Get started to see if you, too, can become a homeowner with this Native American home loan.
