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.

Agency - Department of Veterans Affairs

The Department of Veterans Affairs strives for excellence in patient care and veteran's benefits for its constituents through high quality, prompt and seamless service to United States veterans.

Office - Loan applications are processed completely by the Veterans Benefits Administration field offices for their respective geographic area jurisdiction.

Initial contact should be made with the appropriate office listed in Appendix IV of the Catalog under Veterans Benefits Administration.
Website Address

Program Accomplishments

In FY 07, the volume was 38 loans totaling $7,701,000. In FY 08, the volume is 60 loans totaling $12,428,000. In FY 09, 60 loans are expected totaling $12,676,000.

Uses and Use Restrictions

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.

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.

Eligibility Requirements

Applicant Eligibility

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, then the Native American Veteran must have served on active duty for 90 days or more; peacetime service only 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, 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) 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.

(d) Members of the Selected Reservists who ae, or whose spouses ae, 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.

Beneficiary Eligibility

Native Americans who are veterans, veterans who are married to a Native American, service personnel, and certain unmarried surviving spouses of veterans.


Evidence of the veteran's entitlement for loan benefits and qualifications for the loan purpose, documentation on the loan transaction and characteristics of the leasehold interest in the property proposed to secure the loan. Evidence also that the Federally Recognized Tribal Government which manages the trust land on which the home is or will be located recognizes the veteran, or the veteran's spouse, as a Native American.

Aplication and Award Process

Preapplication Coordination


This program is excluded from coverage under E.O.


Application Procedures

Each participating tribe must first enter into a Memorandum of Understanding with VA. Eligible veterans should obtain a Certificate of Eligibility from the VA Eligibility Center and obtain an acknowledgment of Native American status from his or her tribal council or Native American organizational body. This evidence should be presented to the nearest VA office with an application for a loan.

Award Procedures

The VA Regional Loan Center 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.




Public Law 102-547 and 109-233, 38 U.S.C. 3761-3764.

Range of Approval/Disapproval Time

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


Denial of eligibility is appealable through Board of Veterans' Appeals. In the event of a denial, claimants are advised of appeal rights and procedures at the time of notification.



Assistance Considerations

Formula and Matching Requirements

The limit on NADL loans is the same as the Federal Home Loan Mortgage Corporation (also known as "Freddie Mac") single family conventional conforming loan limit. That limit is currently $417,000 for loans in the 48 contiguous states and $625,500 for loans in Alaska, Hawaii, Guam, and the U.S. Virgin Islands. Increases in these loan limits will be published annually.

Length and Time Phasing of Assistance

Not applicable.

Post Assistance Requirements






Until the loan is paid in full the tribal organization must maintain adequate records on the terms of the leaseholds on the properties on which the homes are located.

Financial Information

Account Identification



(Loans) FY 07 $7,701,000; FY 08 est $12,428,000; FY 09 est $12,676,000.

Range and Average of Financial Assistance

Loans will be limited to $417,000 in the 48 contiguous states and $625,500 in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

Regulations, Guidelines, and Literature

38 CFR 36.4501 and 36.4527. VA Pamphlet 26-93-1, VA Direct Home Loan for Native American Veterans Living on Trust Lands. VA Pamphlet 80-00-1, Federal Benefits for Veterans and Dependents, S/N 051-000-00233-4, at $5.00 each, available from the Government Printing Office, P.O. Box 371954, Pittsburgh, PA 15250-7954.

Information Contacts

Regional or Local Office

Loan applications are processed completely by the Veterans Benefits Administration field offices for their respective geographic area jurisdiction. Initial contact should be made with the appropriate office listed in Appendix IV of the Catalog under Veterans Benefits Administration.

Headquarters Office

Department of Veterans Affairs, Washington, DC 20420. Telephone: (202) 461-9529.

Criteria for Selecting Proposals

Not applicable.

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