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.

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.

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.

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. 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.

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.

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.

Within 10 days after VA's receipt of a complete loan application.

In the event of a denial or disagreement, a notification letter will advise of applicable review/appeal options, associated filing requirements and time limits.