To help overcome these difficulties and promote homeownership among Native American, Native Hawaiian, and Pacific Islander veterans, the Congress established the Native American Veterans Direct Home Loan Program in 1992. Several Factors May Explain Disparity in Number of Loans Made to Different Groups

Native Hawaiian and Pacific Islander veterans have received more loans than Native American veterans during the lifetime of the program, and several factors may explain this difference. Other factors that VA can address are program-related, such as loan limits and assistance with the mortgage process. The remoteness of some tribal lands has been an ongoing problem for housing development on Native American trust lands. VA Has Conducted Various Outreach Activities but Has Taken Limited Steps to Meet Assessment and Reporting Requirements

VA has conducted outreach but has taken limited steps to meet assessment and reporting requirements as specified in the program’s authorizing legislation. Outreach requirements specified in the program’s authorizing legislation state that VA, among other things, is to attend housing conferences, and provide information to veterans, tribal governments and organizations. Appendix I: Other Federal Homeownership Programs for Native Americans on Trust Lands

In addition to VA’s Native American Veterans Direct Home Loan program, four other federal programs provide homeownership assistance to Native American individuals or tribes on trust lands on the mainland. Native American Housing: Homeownership Opportunities on Trust Lands Are Limited.
What GAO Found

Several federal programs have been developed to provide homeownership opportunities for Native Americans because private institutions have rarely supplied conventional home loans to Native Americans on trust lands. In 1992, Congress directed the Department of Veterans Affairs (VA) to create the Native American Veterans Direct Home Loan Program to assist veterans in purchasing, constructing and improving homes. The Native American Veterans Direct Home Loan Program has been characterized by differences in the numbers served, with native Hawaiians and Pacific Islanders together receiving almost five times as many as loans as Native Americans. Several factors that apply to Native Americans, but not to native Hawaiians and Pacific Islanders, may explain this difference. Long-standing barriers to lending on Native American trust lands include insufficient income and credit history, a lack of meaningful interest in land among many Native Americans, and insufficient infrastructure on trust lands. Other factors that VA can address include program limits that may be lower than housing costs for some trust lands and potential applicants' inexperience with the mortgage lending process. VA has conducted outreach but has taken limited steps to meet the assessment and reporting requirements specified in the program's authorizing legislation. VA attends housing conferences, distributes promotional materials, and responds to inquiries about the program to meet outreach requirements specified in its authorizing legislation.