Native American Direct Loan Native American Direct Loan ProgramProgram

What Is A VA Direct Loan?

The Department of Veterans Affairs serves The Department of Veterans Affairs serves as the principal lender and directly lends as the principal lender and directly lends the funds to an eligible Native American the funds to an eligible Native American Veterans for the purpose of purchasing, Veterans for the purpose of purchasing, constructing or improving a home on trust constructing or improving a home on trust lands, or to refinance a prior NADL to lands, or to refinance a prior NADL to reduce the interest rate.reduce the interest rate.

Who is Eligible Veterans (after 9/15/1940)Veterans (after 9/15/1940)

90 days (wartime) 90 days (wartime) 181 continuous days (peacetime)181 continuous days (peacetime) Discharge under conditions other Discharge under conditions other

than dishonorablethan dishonorable*A greater length of service required*A greater length of service required Enlisted after 9/7/1980Enlisted after 9/7/1980 Officers after 10/16/1981Officers after 10/16/1981

24 continuous months or24 continuous months or Full period for which called or Full period for which called or

ordered to active dutyordered to active duty

Who is Eligible Continued..

Active Duty Service MembersActive Duty Service Members At least 90 daysAt least 90 days

Reserve/National Guard MembersReserve/National Guard Members At least 6 yearsAt least 6 years Under Honorable ConditionsUnder Honorable Conditions

Un-remarried Surviving SpousesUn-remarried Surviving Spouses

NADL Requirements

The tribal organization has aThe tribal organization has a standing Memorandum of Understanding with the with the Secretary of Veterans Affairs.Secretary of Veterans Affairs.

The home is on trust/lease/allotted land.The home is on trust/lease/allotted land. The Veteran or a Veteran who is married The Veteran or a Veteran who is married

to a Native American non-Veteran and is a to a Native American non-Veteran and is a member of the tribe.member of the tribe.

Eligible Loan Purposes To purchase, construct, To purchase, construct,

or improve a home on or improve a home on Native American trust Native American trust land. land.

Manufactured Home on Manufactured Home on permanent foundationpermanent foundation

To simultaneously To simultaneously purchase and improve a purchase and improve a home. home.

To refinance another To refinance another NADL direct loan and NADL direct loan and lower the interest ratelower the interest rate..

Requirements For Loan Approval The Veteran intends to occupy the home The Veteran intends to occupy the home

as his/her primary residence. as his/her primary residence. The Veteran and, if applicable, the spouse The Veteran and, if applicable, the spouse

are satisfactory credit risksare satisfactory credit risks The Veteran and, if applicable, the spouse The Veteran and, if applicable, the spouse

have stable and reliable income that is have stable and reliable income that is sufficient to meet payment obligations sufficient to meet payment obligations and provide enough left over for family and provide enough left over for family supportsupport

Direct Loan Benefits No down payment No down payment No private mortgage insuranceNo private mortgage insurance Minimal closing costsMinimal closing costs No prepayment penaltiesNo prepayment penalties Freddie Mac single-family conventional Freddie Mac single-family conventional

conforming loan limit (currently $417,000) conforming loan limit (currently $417,000) Interest rate may be lower than conventional Interest rate may be lower than conventional

mortgages. mortgages. Current interest rate is 4%.

Closing Costs VA Funding feeVA Funding fee

1.25 % Active duty 2% Guards/Reserves Some are exempt

VA appraisal VA appraisal Inspection Fees Inspection Fees Pre-paid InterestPre-paid Interest Recording fees, if Recording fees, if

applicableapplicable Survey, if applicable Survey, if applicable Hazard insurance Hazard insurance

premiumpremium

Tribal Documents

Certified Title Status ReportCertified Title Status Report Lease Agreement (heirs must approve) Lease Agreement (heirs must approve) Proof of Tribal MembershipProof of Tribal Membership IHS/Water/Sewer ReportIHS/Water/Sewer Report Environmental/Archeological SurveyEnvironmental/Archeological Survey

The Loan Process Determine if the tribal organization or appropriate

Native American group has a standing Memorandum of Understanding (MOU)

The Veteran will need to submit or apply for a Certificate of Eligibility (COE)

Contact the Denver Regional Loan Center and apply for Contact the Denver Regional Loan Center and apply for the loanthe loan

VA Preliminary Credit Review VA Preliminary Credit Review FindFind a home to buy or a construction contract with the a home to buy or a construction contract with the

builder to build the homebuilder to build the home Appraisal/Inspections are completedAppraisal/Inspections are completed Close the loan and move into the new homeClose the loan and move into the new home

Approved TribesALASKA (1)

Metlakatla Indian Community

COLORADO (2)Southern Ute Tribe

Ute Mountain Ute Tribe

IDAHO (2)Nez Perce Tribe

Shoshone-Bannock Tribe

MONTANA (6)Assiniboine-Sioux of the Fort Peck

Reservation Blackfeet Nation

Chippewa Cree Tribe of Rocky Boy Crow Agency

Fort Belknap Assiniboine & Gros Ventre Tribes

Northern Cheyenne Tribe

OREGON (2)

Confederated Tribes of the Umatilla Indian Reservation

The Confederated Tribes of the Warm Springs

UTAH (1)

Ute Indian Tribe Uintah and Ouray Reservation

WASHINGTON (9)

The Confederated Tribes of the Colville Reservation

Lummi Nation

Nooksack Indian Tribe

Spokane Tribe of Indians

Quinault Indian Nation

Tulalip Tribes

Yakama Nation

Swinomish Tribe

Suquamish Tribe of Indians of the Port Madison Reservation

Contact Information

Bill Haines Native American Direct Loan Coordinator

VA Denver Regional Loan Center

155 Van Gordon St, Lakewood, CO 80228155 Van Gordon St, Lakewood, CO 80228 William.Haines@va.gov Toll-free 1-888-349-7541, opt 2Toll-free 1-888-349-7541, opt 2 Fax number: 303-914-5666Fax number: 303-914-5666

NADL (On-line Version)

Native American Direct Loans (On-line version) http://www.benefits.va.gov/homeloans/nadl.asp