HUD raises Section 184 upfront loan guarantee fee to 1.50 percent on Oct. 1, 2026

HUD is increasing the upfront loan guarantee fee for all new Section 184 Indian Housing Loan Guarantee Program Firm Commitments from 1.00 to 1.50 percent. The increase covers refinances and takes effect Oct. 1, 2026, according to a notice published in the Federal Register on Sept. 28, 2026.

For new Section 184 Skilled Workers Demonstration Program Firm Commitments, the upfront fee rises from 0 to 1.00 percent. It applies to commitments issued on and after Oct. 1, 2026. The Annual Loan Guarantee Fee stays at zero for all Section 184 loans.

The increase does not apply to loans currently guaranteed under the program. It applies only to new Firm Commitments that HUD issues on and after Oct. 1, 2026.

HUD states the change is meant to keep the program self-sustaining, consistent with other HUD loan guarantee programs. The notice says the program's strong performance and low default rate allow HUD to remove the need for annual appropriations through a modest fee increase. Over the life of the program, the default rate has been approximately 3.50 percent.

The notice cites 12 U.S.C. 1715z-13a(d) and 24 CFR 1005.603, which authorize an upfront fee of up to 3.00 percent of the loan's principal obligation. HUD lists Tonya R. Plummer, Director of the Office of Loan Guarantee, at 202-401-7914 for further information.