Since 1992, The U.S. Department of Veterans’ Affairs has offered a direct loan program for eligible Native American Veterans who want to buy or build a home on federal trust lands. Private mortgage lenders will not make home loans for houses located on federal trust land. That includes the private lenders who make traditional VA loans. Banks and mortgage companies are in business to make money. They know that tribes are sovereign nations where state laws do not apply. That makes it almost impossible for them to get a security interest in a home located on federal trust land. How do they foreclose if the borrower defaults? With no private mortgage funding available, Native American Veterans living on the reservation needed a mechanism to help them purchase a home.