Direct Home Loans Native American Veterans EQUAL HOUSING OPPORTUNITY OPPORTUNITY

Bill Haines & Lyndon Reimonenq NADL Coordinators Department of Veterans Affairs 155 Van Gordon Street Denver, Colorado , 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 l e Atlanta Montgomery Chicago St. Louis St. Paul Fargo Falls n Des Moines Wichita Muskogee Little Rock Jackson New Orleans Houston Waco Phoenix Colorado Utah Wyoming Montana Idaho Seattle Oregon Reno d Los Angeles Denver Regional Loan Center St. Louis RMC Washington Alaska Alaska 570,833 Colorado 103,598 Idaho 82,413 Montana 145,388 Oregon 96,917 Utah 82,076 Washington 66,512 Wyoming 96,988 Total Square Miles Covered 1,244,725

COLORADO Southern Ute Tribe Ute Mountain Ute Tribe IDAHO Nez Perce Tribe Shoshone-Bannock Tribe MONTANA Assiniboine-Sioux of the Fort Peck Reservation Blackfeet Nation Chippewa Cree Tribe of Rocky Boy Montana Crow Agency Fort Belknap Assiniboine & Gros Ventre Tribes OREGON Confederated Tribes of the Umatilla Indian Reservation The Confederated Tribes of the Warm Springs WASHINGTON 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 Approved Tribes

MONTANA Northern Cheyenne TribeUTAH Paiute TribeWASHINGTON Lower Elwha Tribe Samish 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 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?

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