Native American Veteran Direct Loan Program

 

To provide direct loans to certain veterans who are, or whose spouses are, Native Americans for the purchase or construction of homes on trust lands.

Active 64.126 Veterans Benefits Administration, Department of Veterans Affairs E - Direct Loans Fiscal Year 2007 In FY 07, the volume was 38 loans totaling $7,701,000. In FY 08, the volume is 60 loans totaling $12,428,000. In FY 09, 60 loans are expected totaling $12,676,000.
Fiscal Year 2022 In FY22, VA made 43 Native American Direct Loans with an average loan amount of $268,575. Public Law 102-547 and 109-233, 38 U.S.C. 3761-3764. Veterans who are, or whose spouses are, recognized by a Federally Recognized Tribal Government as a Native American and who: (a) Served on active duty on or after September 16, 1940, and were discharged or released under conditions other than dishonorable. If service was any time during World War II, the Korean Conflict, the Vietnam-era, or the Persian Gulf War (ending date for the Persian Gulf War has not been set), then the Native American Veteran must have served on active duty for 90 days or more; Veterans with peacetime service must have served a minimum of 181 days continuous active duty . If separated from enlisted service which began after September 7, 1980, or service as an officer which began after October 16, 1981, a veteran must also have served at least 24 months of continuous active duty or the full period for which called or ordered to active duty. Veterans of such recent service may qualify with less service time if they have a compensable service-connected disability or were discharged after at least 181 days, (90 days during Persian Gulf War), under the authority of 10 U.S.C 1171 or 1173. (b) Any veteran in the above classes with less service but discharged with a service-connected disability. (c) individuals may also be eligible if they were released from active duty due to an involuntary reduction in force, certain medical conditions, or in some instances, for the convenience of the Government; (d) If acknowledged as a Native American by a Federally Recognized Tribal Government, unmarried surviving spouses of otherwise eligible veterans who died in service or whose deaths were attributable to service-connected disabilities and spouses of members of the Armed Forces serving on active duty, who are listed as missing in action, or as prisoners of war and who have been so listed 90 days or more; (e) Native American spouses of members of the Armed Forces serving on active duty, who are listed as missing in action, or as prisoners of war and who have been so listed 90 days or more; (f) individuals who performed full-time National Guard duty (as defined in section 101 of title 10) for a period of not less than 90 cumulative days, including a period of at least 30 consecutive days; (g) Members of the Selected Reserves who are, or whose spouses are, recognized by a Federally Recognized Tribal Government as Native Americans and who are not otherwise eligible for home loan benefits and who have completed a total of 6 years in the Selected Reserves followed by an honorable discharge, placement on the retired list, or continued service. Applicants must have sufficient present and prospective income to meet loan repayment terms and have a satisfactory credit record. Native Americans who are veterans, veterans who are married to a Native American, and certain Native American unmarried surviving spouses of veterans. Evidence of the veteran's entitlement for loan benefits and qualifications for the loan purpose, documentation on the loan transaction and characteristics of the leasehold interest in the property proposed to secure the loan. Evidence also that the Federally Recognized Tribal Government which manages the trust land on which the home is or will be located recognizes the veteran, or the veteran's spouse, as a Native American. Preapplication coordination is not applicable. 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Each participating tribe must first enter into a Memorandum of Understanding with VA. Eligible veterans should obtain a Certificate of Eligibility from the VA through www.va.gov or by mail and obtain an acknowledgment of Native American status from his or her tribal council or Native American organizational body. This evidence should be presented to the VA Native American Direct Loan (NADL) Team. The NADL Team will determine that application requirements are met, determine that the veteran is eligible for the loan and that the purposes for the loan meet the requirements of law and disburse the loan proceeds. There are no deadlines for applying. Not applicable. Not applicable. Not applicable. Not applicable. VA may make home loans to eligible applicants for any of the following purposes: (1) Buy or build a home; (2) simultaneously purchase and improve a home; (3) repair, alter or improve a home; (4) purchase a manufactured home to be permanently affixed to a lot that is already held in leasehold by the applicant; or (5) to refinance an existing VA loan to lower the interest rate. In order for a Veteran to secure a Native American Direct Loan, their tribal government must enter into an agreement— a Memorandum of Understanding (MOU)—with VA detailing how the program will work on its trust lands. Restrictions on direct loans under this program are that: (a) the borrower must have a leasehold or fee interest and occupy, as his or her home, the housing unit securing the loan; (b) the nature and condition of the unit must be suitable for dwelling; (c) the terms of repayment must bear a proper relationship to the applicant's present and anticipated income and expenses; (d) the applicant must be a satisfactory credit risk; (e) the applicant must be a Native American; and (f) the property on which the home is located must be federal trust property. Not applicable. Not applicable. Until the loan is paid in full the tribal organization must maintain adequate records on the terms of the leaseholds on the properties on which the homes are located. Statutory formula is not applicable to this assistance listing.

Matching requirements are not applicable to this assistance listing.

MOE requirements are not applicable to this assistance listing. Loan proceeds may be disbursed in one lump sum when an existing suitable housing unit is involved or in phases in construction cases. Method of awarding/releasing assistance: phased distributions are made in construction cases based on the completion of construction milestones. None. Loan applications are processed completely by the VA Native American Direct Loan team. Information on the Native American Direct Loan program is available by calling 1-888-347-7541, by emailing NADL@va.gov, or by submitting a request through VA's ServiceNow customer portal located at: https://yourit.va.gov/csm?id=rlc_pathfinder Heather Sborz - VBA, Loan Guaranty Service
810 Vermont Ave., NW
Washington, DC 20420 USA
loanpolicy.vbavaco@va.gov
Phone: (602) 315-0486 https://www.va.gov/housing-assistance/home-loans/loan-types/native-american-direct-loan/ 36-4130-0-3-704 (Direct Loans) FY 22$11,553,000.00; FY 23 est $12,296,000.00; FY 24 est $12,591,000.00; FY 19$2,069,521.00; FY 20 est $1,148,963.00; FY 21 est $0.00; - Not applicable/available. 38 CFR 36.4501 and 36.4527. VA Pamphlet 80-00-1, Federal Benefits for Veterans and Dependents, S/N 051-000-00233-4, at $5.00 each, available from the Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954. Information is also available on VA's website: https://www.va.gov/housing-assistance/home-loans/loan-types/native-american-direct-loan/ Not applicable.