Housing Lending Department

Housing loan products are available for the purchase as well as improvement of residential housing at the lowest possible cost to benefit low- to moderate-income borrowers. Our housing loan products carry affordable fixed interest rates and conventional terms.

Due to the large geographic area in which FDDC makes loans, it is always best to call ahead and schedule an appointment for more information regarding FDDC lending. Since Four Directions staff have busy schedules and are often on the road, we do not accept walk-in appointments.

FDDC Standard Mortgage

FDDC’s Standard Mortgage may be used for new construction, home purchase, or refinance. Mobile and modular units are permitted. Homebuyer education is required for first time homebuyers, defined as not owning or purchasing a home three years prior to application. FDDC also offers energy efficiency mortgages that can be used to purchase an Energy Star® qualifying or LEED certified homes.

Section 184 Mortgages

The Section 184 Mortgage may be used for home purchase, or refinance. Mobile and modular units are permitted. Homebuyer education is required for first time homebuyers. Applicants must meet the following criteria: no late payments on any accounts in the past 12 months; collection accounts must be paid in full 12 months prior to application; borrower must have two full years of employment with no gaps.

Home Improvement Loans

Home Improvement loans, which may be secured by first or second lien, can be used for safety, accessibility, and comfort enhancements. FDDC offers an energy efficiency home improvement loan to help tribal members reduce their heating and cooling expenses through energy efficiency education, testing, and analysis.

Credit Builder Loan

In the fall of 2012, FDDC introduced its newest product, a Credit Builder Loan (CBL) to help tribal members with predatory loans or collections. The CBL is a short-term (24 months maximum) unsecured loan of up to $3,000 that is coupled with intensive financial counseling prior to- and for at least four months after the loan closes. We believe this will alleviate the stress and financial ruin caused by adverse financial decisions, and allow people to rebuild their credit and learn the skills necessary to be a successful manager of their personal finances.

Purchasing on Reservation and/or Trust Land

This process may not apply to those wishing to purchase or build on Penobscot Indian Island Reservation. Please contact Erika Honey, (207) 866-6546, ehoney@fourdirectionsmaine.org.

The Bureau of Indian Affairs (BIA) maintains the official record for all documents affecting title to tribal lands, with the exception of Penobscot Indian Island Reservation. BIA issues title status reports (TSR) which shows the proper legal description of a tract of Indian land; current ownership, including any applicable conditions, exceptions, restrictions or encumbrances on record; and whether the land is in unrestricted, restricted, trust, or other status. FDDC uses the TSR to determine whether any encumbrances or liens exist on tribal land.

Before applying to FDDC for a loan to purchase or build a home on tribal reservation or trust land, applicants must work with their tribal administration to obtain the following documents and submit to BIA for review:

1. Lease document: an executed residential lease (preferably 2 duplicate copies). The lease needs to include a plat map or survey with legal description of the leased tract.

2. Tribal resolution: a resolution authorizing the lease of tribal land. The resolution needs to include all required consents; identify the lessee and the property being leased; specify the term of years; the amount of rent; and any special provisions.

3. National Environmental Protection Act (NEPA) Compliance: an Environmental Assessment (EA) or Categorical Exclusion (Cat Ex). An EA may be required depending on the proposed use of the property and if it is going to change from the current use. An EA would be required where a change in use of the property will occur and/or new construction is involved. In cases where no change in use is going to occur, a Cat Ex may satisfy NEPA requirements. If it is determined that a Cat Ex can satisfy NEPA, the BIA Environmental Department would compile the Cat Ex. The EA and/or Cat Ex must include an Endangered Species Section 7 clearance letter from US Fish and Wildlife Services, and a letter from the State Historical Preservation Officer or certified Tribal Historical Preservation Officer stating that historical properties eligible for the National Register for Historical Places will not be impacted. If wetlands will be impacted, the Army Corps of Engineers also needs to be contracted to determine if a wetlands permit is required.

Please contact Mr. Randall Trickey, Realty Officer Bureau of Indian Affairs, at 615-564-6770 with any BIA questions.

Housing Lending Program Forms

If you are interested in applying for a loan or would like to hear more about FDDC’s housing loans, please call our main line at 207.866.6545  Once discussing options with our housing office, individuals wishing to move forward with the loan process will receive initial inquiry documents and be asked to complete and return all  documents indicated in the initial inquiry checklist to FDDC.