---
kind: "section"
citation: "38 U.S.C. § 3762"
title: "38"
title_heading: "Veterans’ Benefits"
number: "3762"
heading: "Direct housing loans to Native American veterans; program administration"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/38/3762"
units:
  - "Part III — Readjustment and Related Benefits"
  - "Chapter 37 — Housing and Small Business Loans"
  - "Subchapter V — Direct Housing Loans for Native American Veterans"
---

# §3762. Direct housing loans to Native American veterans; program administration

- (a) The [Secretary](/usc/38/4101.md?p=8) may make a direct [housing loan](/usc/38/3701.md?p=a) to a [Native American veteran](/usc/38/3765.md?p=2) under this subchapter if the [Secretary](/usc/38/4101.md?p=8) ensures the following:
  - (1) That each [Native American veteran](/usc/38/3765.md?p=2) to whom the [Secretary](/usc/38/4101.md?p=8) makes a direct [housing loan](/usc/38/3701.md?p=a) under this subchapter—
    - (A) holds, possesses, or purchases using the proceeds of the loan a meaningful interest in a lot or dwelling (or both) that is located on [trust land](/usc/38/3765.md?p=1); and
    - (B) will purchase, construct, or improve (as the case may be) a dwelling on the lot using the proceeds of the loan.
  - (2) That each such [Native American veteran](/usc/38/3765.md?p=2) will convey to the [Secretary](/usc/38/4101.md?p=8) by an appropriate instrument the interest referred to in [paragraph (1)(A)](#a-1-A) as security for a direct [housing loan](/usc/38/3701.md?p=a) under this subchapter.
  - (3) That the [Secretary](/usc/38/4101.md?p=8), including the [Secretary](/usc/38/4101.md?p=8)’s [employees](/usc/38/4303.md?p=3) or agents, may enter upon the [trust land](/usc/38/3765.md?p=1) for the purposes of carrying out such actions as the [Secretary](/usc/38/4101.md?p=8) determines are necessary, including—
    - (A) to evaluate the advisability of the loan;
    - (B) to monitor any purchase, construction, or improvements carried out using the proceeds of the loan; and
    - (C) to manage any servicing or post-foreclosure activities, including acquisition, property inspections, and property management.
  - (4) That there are established standards and procedures that apply to the foreclosure of the interest conveyed by a [Native American veteran](/usc/38/3765.md?p=2) pursuant to [paragraph (2)](#a-2), including—
    - (A) procedures for foreclosing the interest; and
    - (B) procedures for the resale of the lot or dwelling (or both) purchased, constructed, or improved using the proceeds of the loan.
  - (5) That the loan is made in a responsible and prudent manner, subject to standards and procedures as are necessary for the reasonable protection of the financial interests of the United States.
- (b)
  - (1) To carry out the purpose of [subsection (a)](#a), the [Secretary](/usc/38/4101.md?p=8) may—
    - (A) enter into a memorandum of understanding with a [tribal organization](/usc/38/3765.md?p=4), other entity, or individual;
    - (B) rely on agreements or determinations of other Federal agencies to guarantee, insure, or make loans on [trust land](/usc/38/3765.md?p=1); and
    - (C) enter into other agreements or take such other actions as the [Secretary](/usc/38/4101.md?p=8) determines necessary.
  - (2) If the [Secretary](/usc/38/4101.md?p=8) determines that the requirements under [subsection (a)](#a) are not being enforced by a [tribal organization](/usc/38/3765.md?p=4), other entity, or individual that is a party to any memorandum of understanding, agreement, or determination described in [paragraph (1)](#b-1), the [Secretary](/usc/38/4101.md?p=8) may cease making new direct [housing loans](/usc/38/3701.md?p=a) to [Native American veterans](/usc/38/3765.md?p=2) under this subchapter within the area of the authority of the [tribal organization](/usc/38/3765.md?p=4), other entity, or individual (as the case may be).
- (c)
  - (1) Loans made under this section shall bear interest at a rate determined by the [Secretary](/usc/38/4101.md?p=8), which rate may not exceed the appropriate rate authorized for guaranteed loans under [section 3703(c)(1)](/usc/38/3703.md?p=c-1) or [section 3712(f) of this title](/usc/38/3712.md?p=f), and shall be subject to such requirements or limitations prescribed for loans guaranteed under this title as the [Secretary](/usc/38/4101.md?p=8) may prescribe.
  - (2) Notwithstanding [section 3704(a) of this title](/usc/38/3704.md?p=a), the [Secretary](/usc/38/4101.md?p=8) shall establish minimum requirements for planning, construction, improvement, and general acceptability relating to any direct loan made under this section.
- (d)
  - (1) The [Secretary](/usc/38/4101.md?p=8) shall establish credit underwriting standards to be used in evaluating loans made under this subchapter. In establishing such standards, the [Secretary](/usc/38/4101.md?p=8) shall take into account the purpose of this program to make available housing to [Native American veterans](/usc/38/3765.md?p=2) living on [trust lands](/usc/38/3765.md?p=1).
  - (2) The [Secretary](/usc/38/4101.md?p=8) shall determine the reasonable value of the interest in property that will serve as security for a loan made under this section and shall establish procedures for appraisals upon which the [Secretary](/usc/38/4101.md?p=8) may base such determinations. The procedures shall incorporate generally the relevant requirements of [section 3731 of this title](/usc/38/3731.md), unless the [Secretary](/usc/38/4101.md?p=8) determines that such requirements are impracticable to implement in a geographic area, on particular [trust lands](/usc/38/3765.md?p=1), or under circumstances specified by the [Secretary](/usc/38/4101.md?p=8).
- (e) Loans made under this section shall be repaid in monthly installments.
- (f) In connection with any loan under this section, the [Secretary](/usc/38/4101.md?p=8) may make advances in cash to provide for repairs, alterations, and improvements and to meet incidental expenses of the loan transaction. The [Secretary](/usc/38/4101.md?p=8) shall determine the amount of any expenses incident to the origination of loans made under this section, which expenses, or a reasonable flat allowance in lieu thereof, shall be paid by the [veteran](/usc/38/3701.md?p=b-2) in addition to the loan closing costs.
- (g) Without regard to any provision of this chapter (other than a provision of this section), the [Secretary](/usc/38/4101.md?p=8) may—
  - (1) take any action that the [Secretary](/usc/38/4101.md?p=8) determines to be necessary with respect to the custody, management, protection, and realization or sale of investments under this section;
  - (2) determine any necessary expenses and expenditures and the manner in which such expenses and expenditures shall be incurred, allowed, and paid;
  - (3) make such rules, regulations, and orders as the [Secretary](/usc/38/4101.md?p=8) considers necessary for carrying out the [Secretary](/usc/38/4101.md?p=8)’s functions under this section; and
  - (4) in a manner consistent with the provisions of this chapter and with the [Secretary](/usc/38/4101.md?p=8)’s functions under this subchapter, employ, utilize, and compensate any persons, organizations, or [departments](/usc/38/101.md?p=1) or agencies (including [departments](/usc/38/101.md?p=1) and agencies of the United States) designated by the [Secretary](/usc/38/4101.md?p=8) to carry out such functions.
- (h) The [Secretary](/usc/38/4101.md?p=8) may make direct loans to [Native American veterans](/usc/38/3765.md?p=2) in order to enable such [veterans](/usc/38/3701.md?p=b-2) to refinance existing mortgage loans for any of the following purposes:
  - (1) To refinance an existing loan made under this section, if the loan—
    - (A) meets the requirements set forth in subparagraphs [(B)](#h-1-B), [(C)](#h-1-C), and (E) of paragraph (1) of [section 3710(e) of this title](/usc/38/3710.md?p=e);
    - (B) will bear an interest rate at least one percentage point less than the interest rate borne by the loan being refinanced; and
    - (C) complies with paragraphs (2) and (3) of [section 3710(e) of this title](/usc/38/3710.md?p=e), except that for the purposes of this subsection the reference to subsection (a)(8) of [section 3710 of this title](/usc/38/3710.md) in such [paragraphs (2)](#h-2)[^1] and (3) shall be deemed to be a reference to this subsection.
  - (2) To refinance an existing mortgage loan not made under this section on a dwelling owned and occupied by the [veteran](/usc/38/3701.md?p=b-2) as the [veteran](/usc/38/3701.md?p=b-2)’s home, if all of the following requirements are met:
    - (A) The loan will be secured by the same dwelling as was the loan being refinanced.
    - (B) The loan will provide the [veteran](/usc/38/3701.md?p=b-2) with a [net tangible benefit](/usc/38/3765.md?p=9).
    - (C) The nature and condition of the property is such as to be suitable for dwelling purposes.
    - (D) The amount of the loan does not exceed either of the following:
      - (i) 100 percent of the reasonable value of the dwelling, with such reasonable value determined under the procedures established by the [Secretary](/usc/38/4101.md?p=8) under [subsection (d)(2)](#d-2).
      - (ii) An amount equal to the sum of the balance of the loan being refinanced and such closing costs (including any discount points) as may be authorized by the [Secretary](/usc/38/4101.md?p=8) to be included in the loan.
    - (E) Notwithstanding [subparagraph (D)](#h-2-D), if a loan is made for both the purpose of this paragraph and to make energy efficiency improvements, the loan must not exceed either of the following:
      - (i) 100 percent of the reasonable value of the dwelling as improved for energy efficiency, with such reasonable value determined under the procedures established by the [Secretary](/usc/38/4101.md?p=8) under [subsection (d)(2)](#d-2).
      - (ii) The amount referred to under [subparagraph (D)(ii)](#h-2-D-ii), plus the applicable amount specified under [section 3710(d)(2) of this title](/usc/38/3710.md?p=d-2).
    - (F) The loan meets all other requirements the [Secretary](/usc/38/4101.md?p=8) may establish under this subchapter.
    - (G) The existing mortgage being refinanced is a first lien on the property and secured of record.
  - (3) To refinance an existing mortgage loan to repair, alter, or improve a dwelling owned by the [veteran](/usc/38/3701.md?p=b-2) and occupied by the [veteran](/usc/38/3701.md?p=b-2) as the [veteran](/usc/38/3701.md?p=b-2)’s home, if all of the following requirements are met:
    - (A) The loan will be secured by the same dwelling as was the loan being refinanced.
    - (B) The nature and condition of the property is such as to be suitable for dwelling purposes, and the repair, alteration, or improvement substantially protects or improves the basic livability or utility of such property.
    - (C) The amount of the loan, including the costs of repairs, alterations, and improvements, does not exceed either of the following:
      - (i) 100 percent of the reasonable value of the dwelling as repaired, altered, or improved, with such reasonable value determined under the procedures established by the [Secretary](/usc/38/4101.md?p=8) under [subsection (d)(2)](#d-2).
      - (ii) An amount equal to the sum of—
        - (I) the balance of the loan being refinanced;
        - (II) the actual cost of repairs, alterations, or improvements; and
        - (III) such closing costs (including any discount points) as may be authorized by the [Secretary](/usc/38/4101.md?p=8) to be included in the loan.
    - (D) The loan meets all other requirements the [Secretary](/usc/38/4101.md?p=8) may establish under this subchapter.
    - (E) The existing mortgage loan being refinanced is a first lien on the property and secured of record.
- (i)
  - (1) The [Secretary](/usc/38/4101.md?p=8) shall, in consultation with [tribal organizations](/usc/38/3765.md?p=4) (including the National Congress of American Indians and the National American Indian Housing Council), carry out an outreach program to inform and educate [Native American veterans](/usc/38/3765.md?p=2) of the availability of direct [housing loans](/usc/38/3701.md?p=a) for [Native American veterans](/usc/38/3765.md?p=2) who live on [trust lands](/usc/38/3765.md?p=1).
  - (2) Activities under the outreach program shall include the following:
    - (A) Attending conferences and conventions conducted by the National Congress of American Indians in order to work with the National Congress in providing information and training to [tribal organizations](/usc/38/3765.md?p=4) and [Native American veterans](/usc/38/3765.md?p=2) regarding the availability of housing [benefits](/usc/38/4303.md?p=2) under this subchapter and in assisting such organizations and [veterans](/usc/38/3701.md?p=b-2) with respect to such housing [benefits](/usc/38/4303.md?p=2).
    - (B) Attending conferences and conventions conducted by the National American Indian Housing Council in order to work with the Housing Council in providing information and training to [tribal organizations](/usc/38/3765.md?p=4) and tribal housing entities regarding the availability of such [benefits](/usc/38/4303.md?p=2).
    - (C) Attending conferences and conventions conducted by the [Department](/usc/38/101.md?p=1) of Hawaiian Homelands in order to work with the [Department](/usc/38/101.md?p=1) of Hawaiian Homelands in providing information and training to tribal housing entities in Hawaii regarding the availability of such [benefits](/usc/38/4303.md?p=2).
    - (D) Producing and disseminating information to tribal governments, tribal [veterans](/usc/38/3701.md?p=b-2) service organizations, and [tribal organizations](/usc/38/3765.md?p=4) regarding the availability of such [benefits](/usc/38/4303.md?p=2).
    - (E) Assisting [tribal organizations](/usc/38/3765.md?p=4) and [Native American veterans](/usc/38/3765.md?p=2) with respect to such [benefits](/usc/38/4303.md?p=2).
    - (F) Outstationing loan guarantee specialists in tribal facilities on a part-time basis if requested by the tribal government.
    - (G) Pursuant to [subsection (g)(4)](#g-4), assisting [Native American veterans](/usc/38/3765.md?p=2) in qualifying for mortgage financing by—
      - (i) partnering with local service providers, such as [tribal organizations](/usc/38/3765.md?p=4), [tribally designated housing entities](/usc/38/3765.md?p=11), [Native community development financial institutions](/usc/38/3765.md?p=8), and nonprofit organizations, for conducting outreach, homebuyer education, housing counseling, and post-purchase education; and
      - (ii) providing [other technical assistance](/usc/38/3765.md?p=10) as needed.
    - (H) Attending conferences and conventions conducted by the network of [Native community development financial institutions](/usc/38/3765.md?p=8) and other [Native American](/usc/38/3765.md?p=3) homeownership organizations to provide information and training to [Native community development financial institutions](/usc/38/3765.md?p=8) about the availability of the relending program under [section 3762A of this title](/usc/38/3762A.md).
- (j) The [Secretary](/usc/38/4101.md?p=8) shall include as part of the annual [benefits](/usc/38/4303.md?p=2) report of the [Veterans](/usc/38/3701.md?p=b-2) [Benefits](/usc/38/4303.md?p=2) Administration information concerning the cost and number of loans provided under this subchapter for the fiscal year covered by the report.
- (k) The [Secretary](/usc/38/4101.md?p=8) shall assign a sufficient number of personnel of the [Department](/usc/38/101.md?p=1) dedicated to carrying out the authority of the [Secretary](/usc/38/4101.md?p=8) under this subchapter, including construction and valuation specialists to assist with issues unique to new construction and renovations on [trust land](/usc/38/3765.md?p=1).

## Footnotes

[^1]: So in original. Reference in section 3710(e)(2) of this title is to “clause (8) of subsection (a)” of section 3710.

## Source credit

(Added Pub. L. 102–547, § 8(a), Oct. 28, 1992, 106 Stat. 3637; amended Pub. L. 104–275, title II, § 202(a), Oct. 9, 1996, 110 Stat. 3330; Pub. L. 105–114, title II, § 201(b), (c), Nov. 21, 1997, 111 Stat. 2282, 2283; Pub. L. 107–103, title IV, § 402(b), (c), Dec. 27, 2001, 115 Stat. 993; Pub. L. 109–233, title I, § 103(b), (c)(1), (d), (e), (f)(3), June 15, 2006, 120 Stat. 400, 401; Pub. L. 116–23, § 6(a)(2), June 25, 2019, 133 Stat. 973; Pub. L. 118–210, title II, § 231(a)–(d), Jan. 2, 2025, 138 Stat. 2783–2785.)

## Notes

### Editorial Notes

### Amendments

2025—Subsec. (a). Pub. L. 118–210, § 231(a)(1), amended subsec. (a) generally. Prior to amendment, subsec. (a) related to the requirements for the Secretary to make a direct housing loan to a Native American veteran.

Subsec. (b). Pub. L. 118–210, § 231(a)(2), amended subsec. (b) generally. Prior to amendment, subsec. (b) related to the requirements that each memorandum of understanding the Secretary enters into with a tribal organization must provide.

Subsec. (h). Pub. L. 118–210, § 231(b), amended subsec. (h) generally. Prior to amendment, subsec. (h) related to when the Secretary may make direct loans to Native American veterans.

Subsec. (i)(2)(G), (H). Pub. L. 118–210, § 231(c), added subpars. (G) and (H).

Subsec. (k). Pub. L. 118–210, § 231(d), added subsec. (k).

2019—Subsec. (c). Pub. L. 116–23 redesignated pars. (2) and (3) as (1) and (2), respectively, and struck out former par. (1) which set an $80,000 limit, with certain exceptions, on the principal amount of any direct housing loan made to a Native American veteran.

2006—Pub. L. 109–233, § 103(f)(3), amended section catchline generally, substituting “Direct housing loans to Native American veterans; program administration” for “Direct housing loans to Native American veterans”.

Subsec. (a). Pub. L. 109–233, § 103(c)(1)(A), inserted “under this subchapter” after “to a Native American veteran” in introductory provisions.

Subsec. (b)(1)(E). Pub. L. 109–233, § 103(c)(1)(B), substituted “loans under this subchapter are made” for “the pilot program established under this subchapter is implemented”.

Subsec. (c)(1)(A). Pub. L. 109–233, § 103(e), inserted “veteran” after “Native American”.

Subsec. (c)(1)(B). Pub. L. 109–233, § 103(c)(1)(C), (d), designated existing provisions as cl. (i), substituted “Subject to clause (ii), the” for “The” after cl. (i) designation, substituted “make direct housing loans under this subchapter” for “carry out the pilot program under this subchapter in a manner that demonstrates the advisability of making direct housing loans”, and added cl. (ii).

Subsec. (i)(1). Pub. L. 109–233, § 103(c)(1)(D)(i), struck out “the pilot program provided for under this subchapter and” after “educate Native American veterans of”.

Subsec. (i)(2)(A), (E). Pub. L. 109–233, § 103(c)(1)(D)(ii), (iii), substituted “under this subchapter and in assisting such organizations and veterans with respect to such housing benefits” for “under the pilot program and in assisting such organizations and veterans in participating in the pilot program” in subpar. (A) and “with respect to such benefits” for “in participating in the pilot program” in subpar. (E).

Subsec. (j). Pub. L. 109–233, § 103(b), amended subsec. (j) generally. Prior to amendment, subsec. (j) related to the Secretary’s transmittal to the Committees on Veterans’ Affairs of the Senate and House of Representatives of an annual report relating to the implementation of the Native American veteran housing loan pilot program.

2001—Subsec. (a)(1). Pub. L. 107–103, § 402(b), designated existing provisions as subpar. (A), substituted “; or” for “; and”, and added subpar. (B).

Subsec. (j). Pub. L. 107–103, § 402(c), substituted “2006” for “2002” in introductory provisions.

1997—Subsec. (i). Pub. L. 105–114, § 201(b), designated existing provisions as par. (1), inserted “, in consultation with tribal organizations (including the National Congress of American Indians and the National American Indian Housing Council),” after “the Secretary shall”, struck out “tribal organizations and” after “educate”, and added par. (2).

Subsec. (j). Pub. L. 105–114, § 201(c), added subsec. (j).

1996—Subsecs. (h), (i). Pub. L. 104–275 added subsec. (h) and redesignated former subsec. (h) as (i).

### Statutory Notes and Related Subsidiaries

### Effective Date of 2019 Amendment

Amendment by Pub. L. 116–23 applicable with respect to a loan guaranteed under section 3710 of this title on or after Jan. 1, 2020, see section 6(d) of Pub. L. 116–23, set out as a note under section 3703 of this title.