direct home loans
DESCRIPTION
EQUAL HOUSING OPPORTUNITY. Direct Home Loans. Native American Veterans. Bill Haines & Lyndon Reimonenq. NADL Coordinators. Department of Veterans Affairs 155 Van Gordon Street Denver, Colorado 80225. 1-888-349-7541, Option 2. History. - PowerPoint PPT PresentationTRANSCRIPT
Direct Home Loans
Native American Veterans
EQUAL HOUSINGEQUAL HOUSINGOPPORTUNITYOPPORTUNITY
EQUAL HOUSINGEQUAL HOUSINGOPPORTUNITYOPPORTUNITY
Bill Haines & Lyndon ReimonenqNADL Coordinators
Department of Veterans Affairs
155 Van Gordon Street
Denver, Colorado 80225
1-888-349-7541, 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
•le
•Atlanta
• Montgomery
Chicago
St. Louis
St. Paul
Fargo
Falls
n
Des Moines
Wichita
MuskogeeLittle 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
6
32
Washington
Alaska
Alaska 570,833Colorado 103,598Idaho 82,413
Montana 145,388Oregon 96,917
Utah 82,076Washington 66,512Wyoming 96,988
Total Square Miles
Covered
1,244,725
COLORADOSouthern Ute Tribe
Ute Mountain Ute Tribe
IDAHONez Perce Tribe
Shoshone-Bannock Tribe
MONTANAAssiniboine-Sioux of the Fort Peck
Reservation Blackfeet Nation
Chippewa Cree Tribe of Rocky Boy Montana
Crow AgencyFort 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
MONTANAMONTANA
Northern Cheyenne Tribe
UTAHUTAH
Paiute Tribe
WASHINGTONWASHINGTON
Lower Elwha TribeSamish 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 UnderstandingMemorandum 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?Questions?
THANK YOU!THANK YOU!