Today we have a conversation with Eric Sprenkle Loan Officer of 1st Tribal Lending, joining Wilma Noah and Krystal Cedeno, Training and Development Specialist of the Native Learning Center. Eric Sprenkle will cover new construction with Section 184. How Tribe’s or TDHE’s can be the borrower as well as how Tribes and TDHEs can use Section 184 Loans to develop rental housing or to build single-family homes (1-4 units) that are subsequently sold (or assumed) by eligible borrowers. Today’s talking points will cover: • Mortgage program specifically designed for Trust land • HUD 184 allows cost approach appraisals, which are used on tribal trust land. Other financing requires comparable sales. • Tribe/TDHE can take advantage of today’s interest rates • Each phase of construction may consist of up to 20 units(exceptions have been made based on your overall project plan) • 20 units is a program guide. If a phase is to exceed 20 units please note in an overall project plan. • Cost-savings: • Construction costs may be lower if doing multiple units at one time • Appraisal costs may be lower if doing multiple units at one time • Lender costs may be lower if doing multiple units at one time • Down payment is only 2.25% per unit VS typical construction financing which is approx.. 20% down • One time closing that contains both the construction loan and permanent loan all in one. • Up to 15% of off-site infrastructure can be included in the cost of the individual home