VA Direct Home Loans for Native Americans
Living on Trust Lands
VA direct home loans are available to eligible Native American veteran who which to purchase or construct a home on trust lands.
|What can the loan be used for?
- To purchase, construct or improve a home on Native American Trust Land.
- To simultaneously purchase and improve a home, or to refinance another VA direct loan made under this program in order to lower the interest rate.
VA direct loans are generally limited to the cost of the home or an established amount, whichever is less.
|5 Easy Steps to VA Home Loan
1. Make sure that your tribal organization or other appropriate Native American group is participating in the VA direct loan program. The tribal organization must have a signed a Memorandum of Understanding with the Secretary of Veterans Affairs which includes the conditions governing its participation in the program
2. Apply for a Certificate of Eligibility.
3. Decide on a home to buy and sign a purchase agreement or a contract with the builder to build the home. Make sure to include in the contract a provision which makes the contract void if you are unable to obtain a VA direct loan.
4. Contact either your local housing authority or the local VA office to apply for the loan. An appraisal of the property will be ordered and you will be asked to provide information needed to verify your income and credit history.
5. Close the loan and move into your new home.
|Requirements for Loan Approval.
To obtain a VA direct loan, the law requires that:
- The applicant must be an eligible Native American veteran who has available entitlement.
- The tribal organization or other appropriate Native American group must be participating in the VA direct loan program. The tribal organization must have signed a Memorandum of Understanding with the Secretary of Veterans Affairs which spells out the conditions under which the program will operate on its trust lands.
- The loan must be to purchase, construct or improve a home on Native American trust land. Individually allotted land is considered trust land for their purpose.
- The veteran must occupy the property as his or her home; a loan for rental or investment purposes is not permitted.
- The veteran must be a satisfactory credit risk.
- The income of the veteran and spouse, if any, must be shown to be stable and sufficient to meet the mortgage payments, cover the other costs of owning ah home, take care of other obligations and expenses and have enough left over for family support.
- All prospective applicants are encouraged to first contact either their local housing authority or the nearest VA regional office to discuss their financial situation and obtain a general idea of whether or not they might qualify for a home loan.
If you are a Native American veteran interested in obtaining or improving a home or trust land, or know of someone who is, it makes sense to look into the VA direct loan program as a good way to finance a home purchase.
496 Old Route 66,
St. Robert, MO 65584
Toll Free: 800.440.2666
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Waynesville and St. Robert Missouri areas.
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