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Grant Community.com Catalog of Federal Domestic Assistance Program Descriptions |
CATALOG OF FEDERAL DOMESTIC
ASSISTANCE
14.865: Public and Indian Housing: Indian Loan Guarantee Program
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| PROGRAM AND AWARD | FINANCIAL AND INFORMATION CONTACTS |
| ELIGIBILITY REQUIREMENTS | FINANCIAL AND ADMINISTRATIVE INFO. |
| APPLICATION AND AWARD PROCESS | INFORMATION CONTACTS |
| RELATED PROGRAMS | ASSISTANCE CONSIDERATIONS |
| PROGRAM ACCOMPLISHMENTS | POST ASSISTANCE REQUIREMENTS |
Applicant Eligibility: The loan applicant must be a Native American, which includes Alaska Natives, or a Tribally Designated Housing Authority (TDHE) or a Tribe or an Indian Housing Authority 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.
Preapplication Coordination: A Tribe must develop eviction and foreclosure proceedings 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 homesite must be in an Indian area as defined by Title VII of NAHASDA. 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.
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 program also provides a second, optional method of processing loans called Direct Guarantee where eligible lenders will underwrite, approve and close the loan prior to submitting loan documentation to HUD.
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.
Criteria for Selecting Proposals: Not applicable.
Examples of Funded Projects: Not applicable.
Range and Average of Financial Assistance: The average loan amount in FY 1999 was $90,695; FY 1998 was $96,855, down from an average of $106,648 in FY 1997, and $113,429 in FY 1996.
Federal Agency: PUBLIC AND INDIAN HOUSING, OFFICE OF NATIVE AMERICAN PROGRAMS, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Type of Assistance: Guaranteed/Insured Loans.
Obligations: (Loans Guaranteed) FY 99 $12,211,318; FY 00 est $163,690,000; and FY 01 est $163,690,000.
Budget Account Number: 86-0223-0-1-371.
Authorization: Housing and Community Development Act of 1992, as amended; Native American Housing Assistance and Self-Determination Act (NAHASDA) of 1996, Public Law 102-550; 106 Stat. 3739, 12 U.S.C. 1515z-13a.
Regulations, Guidelines, and Literature: 24 CFR Part 1005; a Guidebook and literature is available from HUD's Office of Native American Programs.
Regional or Local Office: None.
Headquarters Office: Director, Office of Loan Guarantee, National Program Office of Native American Programs, 1999 Broadway, Suite 3390, Box 90, Denver, Colorado 80202. Phone: (303) 675-1600.
(See Appendix IV for more contact info.)
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.
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.
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.
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Last Updated, November, 2000
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