Native
American
Direct Loan Program
ü
Purchase or construct a home on
Native American trust land;
ü
Purchase a manufactured home that
is/will be affixed to a permanent foundation on Native American trust land; or
ü Refinance an existing Native American Direct Loan to lower the interest rate.
Many of our nation’s
veterans are Native American. In the
past, most mortgage lenders were reluctant to make loans on trust lands because
of certain title restrictions. In 1992,
the Native American Direct Loan Program was created specifically to assist
veterans who wanted to obtain a home loan on trust land. In 2006, VA committed just over $5.7 million
for Native American Direct Loans nationwide.
Now, VA is able to directly lend up to $417,000, or the appraised value
(whichever is less).
ü
No down payment required
ü
No private mortgage insurance
ü
Minimal closing costs
ü
Generally lower interest rates than
conventional mortgages
ü
No prepayment penalties
ü
Veterans in receipt of VA
Compensation may elect to have their mortgage payments directly deducted from
their compensation.
Native American veterans,
or any veteran who is married to a Native American non-veteran, who reside on
trust land and have meaningful interest in the dwelling or lot. Veterans must meet the same time in service
requirements as the regular VA Home Loan program and have available home loan
entitlement. (Submit VA Form 26-1880,
Request for Determination of Eligibility, along with your proof of service to
your local VA office.)
ü
There must be an approved Memorandum of
Understanding between the tribal organization and VA.
ü
The veteran must occupy, or intend to occupy the
property within a reasonable time.
ü
The veteran (and spouse) must be deemed a
satisfactory credit risk and have sufficient income to meet the monthly
mortgage payments as well as any other debts or obligations.
ü
Appraisal and any Inspection Fees
ü
Title/Escrow Fees
ü
Hazard Insurance Premiums
ü
Pre-paid Interest
ü
VA Funding Fee (1.25 – 2 percent of the loan
amount)
o
May be included in loan amount. Certain veterans may be exempt from paying
this fee.
For More Information
Call toll free:
1-888-869-0194 ext. 3048
National Home Loan Guaranty Service: www.homeloans.va.gov
Phoenix RLC: www.vba.va.gov/ro/phoenixlgy/index.htm
Phoenix Regional Loan Center
Attn: Loan Production - 261
3333 N. Central Ave.
Phoenix, AZ 85012