What Is the Indian Home Loan Guarantee Program?

The Indian Home Loan program exists through the US Department of Housing and Urban Development (HUD). The program aims to make home ownership accessible and affordable to eligible individual Native Americans, tribes and Indian Housing authorities.


The majority of land reserved for use by Native Americans is held in trust by the US Government. No liens or mortgages can be made against this land until the government has approved the proceedings, making it hard for Native Americans to receive private mortgage funds.


The Indian Home Loan Guarantee program can be used for acquisition, construction, rehabilitation or refinancing of a single family home. The property must be located on restricted Indian land as defined by the tribe. 


If a borrower is approved through the Indian Home Loan program, the HUD will insure the private mortgage on the land to reduce financing costs, reduce income requirements, and otherwise extend ownership of the property to an individual who may have difficulties qualifying for an independent conventional loan. The Indian Home Loan Program is just one of the individual programs offered by HUD in order to spread home ownership to groups underserved by the private mortgage industry.