Direct Home Loans

Native American Veterans

EQUAL HOUSINGEQUAL HOUSINGOPPORTUNITYOPPORTUNITY

Bill Haines & Lyndon ReimonenqNADL Coordinators

Department of Veterans Affairs

155 Van Gordon Street

Denver, Colorado 80225

1-888-349-7541, Option 2

History

• In the past, most mortgage lenders were reluctant to make loans on trust lands because of certain title restrictions

• Program created by Congress in 1992 as a pilot program

• The program was made permanent as part of the Veterans’ Housing Opportunity and Benefits Improvement Act of 2006

• Pittsburgh

•n

•s

•e

•le

•Atlanta• Montgomery

Chicago

St. Louis

St. Paul

Fargo

Falls

n

Des Moines

Wichita

MuskogeeLittle Rock

Jackson

New OrleansHouston

Waco

••Phoenix

Colorado

•Utah

Wyoming

•Montana

•Idaho

• Seattle

•Oregon

•Reno

d

Los Angeles

Denver Regional Loan Center

St. Louis RMC

6

32

Washington

Alaska

Alaska 570,833Colorado 103,598Idaho 82,413

Montana 145,388Oregon 96,917

Utah 82,076Washington 66,512Wyoming 96,988

Total Square Miles Covered

1,244,725

COLORADOSouthern Ute Tribe

Ute Mountain Ute Tribe

IDAHONez Perce Tribe

Shoshone-Bannock Tribe

MONTANAAssiniboine-Sioux of the Fort Peck

Reservation Blackfeet Nation

Chippewa Cree Tribe of Rocky Boy Montana

Crow AgencyFort Belknap Assiniboine & Gros Ventre

Tribes

  

OREGON

Confederated Tribes of the Umatilla Indian Reservation

The Confederated Tribes of the Warm Springs

WASHINGTONThe Confederated Tribes of the Colville

ReservationLummi Nation

Nooksack Indian TribeSpokane Tribe of IndiansQuinault Indian Nation

Tulalip TribesYakama Nation

Swinomish Tribe

Approved Tribes

MONTANAMONTANA

Northern Cheyenne Tribe

UTAHUTAH

Paiute Tribe

WASHINGTONWASHINGTON

Lower Elwha TribeSamish Tribe

Suquamish Tribe  

Pending MOU’s

Eligible Purposes

• Purchase or construct a home on Native American trust land

• Purchase a manufactured home that is/will be affixed to a permanent foundation on Native American trust land

• Refinance an existing Native American Direct Loan to lower the interest rate

Benefits• No down payment required

• No private mortgage insurance

• Minimal closing costs

• No prepayment penalties

What are the loan limits and interest rate?

• Limit is $417,000 on Federal Trust land located in the 48 contiguous states

• Limit is $625,000 for loan made on Federal Trust land in Alaska, Hawaii and the South Pacific

• The current interest rate is 3.5 percent

Program Requirements• Approved Memorandum of Understanding between the

tribal organization and VA

• Must be Federal Trust Land

• Veteran must have an “ownership interest” in the property

A lease (either from the tribe or from a member of the tribe (for allotted land), or

An allotment from the Tribe or from BIA

Program Requirements (Cont.)• You must have enough income to meet your monthly

mortgage payments, maintain the home, take care of other debts and obligations, and still have enough money left over to cover day to day expenses (food, gas, etc…)

• You must also have a good credit history

• The loan must be for the home you will live in

Memorandum of UnderstandingMemorandum of Understanding

Who may qualify• Veterans (including Reserve and National Guard

members who were called to active duty)

• Active duty service members

• Current Reserve and Guard members (usually after 6 years of reserve service)

• Commissioned Officers of the Public Health Service and National Oceanic and Atmospheric Administration

Typical Loan Closing Fees• Appraisal and any Inspection Fees

• Title/Escrow Fees

• Hazard Insurance Premiums

• Pre-paid Interest

• VA Funding Fee (1.25 – 2 percent of the loan amount (May be included in the loan amount.

FIVE EASY STEPS TO A VA LOAN• Make sure that your tribal organization participating in the VA

direct loan program • Apply for a Certificate of Eligibility

• Decide on a home to buy and sign a purchase agreement or a contract with the builder to build the home

• Contact the local VA office to apply for the loan. An appraisal will be ordered Verify your income and credit history

• Close the loan and move into your new home

Questions?Questions?

THANK YOU!THANK YOU!