VA makes it easier to buy a home on tribal land

VA is focusing on improving the Native American Direct Loan (NADL) by increasing outreach to Native American tribes. VA Loan Guaranty Service strives to ensure consistent, open communication to all Native Americans on tribal land to improve the overall experience for the more than 70,000 Native American and Pacific Islander Veterans eligible for the program.

To make these improvements, VA established a centralized team of NADL coordinators who are dedicated to supporting and improving the program. In 2020, the coordinators conducted outreach to more than 80 NADL eligible Veterans who are members of a Tribe or married to a Veteran member of a Tribe. They also provide consistent communications and outreach to Tribal and Pacific Island governments.

“We are committed to serving Native American Veterans and plan to do everything we can to help them realize the American dream of homeownership,” said John Bell, acting executive director for VA’s Loan Guaranty Service. “We know that by having a team solely focused on the NADL program, VA will more effectively conduct outreach to governments, including Tribes that do not have a NADL Memorandum of Understanding (MOU) in place which will help Veterans buy or refinance homes.”

The MOU outlines the terms of lending and what happens in cases of foreclosure. VA is authorized to enter into Memorandums of Understanding with federally recognized Indian Tribes and Pacific Islander Communities. The MOU allows VA to provide funds directly to Native American Veterans living on tribal land to purchase or build a home. In addition, through the program, these loans can be refinanced to lower interest rates. The NADL program offers the same great benefits as a standard VA-guaranteed home loan, such as no down payment, no private mortgage insurance, limited closing costs, and competitive interest rates.

The direct loan program differs significantly from the traditional VA Home Loan Program where the Department guarantees loans funded by VA-approved lenders. In contrast, the NADL is a direct loan provided by VA in which the Department originates, underwrites (analyze a borrower’s income, assets and ability to repay a loan), funds, and services (receive mortgage payments and monitor loan status) the loan over time. Another benefit of the NADL is that it enables Tribal governments to use their financial resources for other priorities and possibly help local builders develop business.

Ultimately, VA wants to be the loan program of choice for eligible Veterans and Native American Tribal governments. Contact a NADL Coordinator via email at NADL@va.gov, or by phone at 888-349-7541 from 8 a.m. to 6 p.m. EST.

For more information on the NADL program, including eligibility and interest rate, visit https://www.va.gov/housing-assistance/home-loans/loan-types/native-american-direct-loan/.

Native Americans who would like to use the VA-guaranteed home loan program through a mortgage lender, please visit the website at https://www.va.gov/housing-assistance/home-loans/home-buying-process/.