New approved lending areas create expanded opportunities for eligible Native American borrowers and participating lenders

HUD Broadens Geographic Eligibility for Section 184 Lending

HUD's Office of Native American Programs (ONAP) has expanded the approved lending areas for the Section 184 Indian Housing Loan Guarantee Program, adding new counties where eligible American Indian and Alaska Native borrowers may now obtain Section 184 financing. The changes were announced through Dear Lender Letter (DLL) 2026-04.

What Changed?

The Section 184 program is available only within geographic areas approved by HUD. The updated guidance expands the list of eligible counties, allowing participating lenders to originate Section 184 loans in additional locations.

While borrower eligibility and underwriting requirements remain unchanged, the expansion increases the number of properties that may now qualify under the program.

Why It Matters

For lenders already participating in the Section 184 program, the update creates new lending opportunities without changing the program's core eligibility requirements.

Institutions should:

• Review HUD's updated list of approved counties
• Update geographic eligibility tools and internal overlays
• Ensure loan origination systems reflect the revised program boundaries
• Train origination staff on the newly eligible lending areas

Taking these steps before originating loans in newly approved counties can help ensure operational readiness and compliance.

Looking Ahead

HUD's expansion reflects its ongoing efforts to increase access to affordable mortgage financing for eligible Native American communities while broadening the geographic reach of the Section 184 program.

Lenders participating in the program should review the updated county listings to identify new lending opportunities and confirm their systems and processes accurately reflect the revised eligibility map.

Propel offers document packages supporting both the Section 184 Indian Housing Loan Guarantee Program and the Section 184A Native Hawaiian Housing Loan Guarantee Program. To learn more about these capabilities, connect with the Asurity team.