About the Native CDFI Native Relending Demonstration Program

The Native CDFI Relending Demonstration program provides mortgage capital to NCDFIs through a 33-year loan at 1% interest rate with a 3-year payment deferral at loan onset. This capital can be used on tribal lands, Alaska Native Claims, and Hawaiian Homelands.

The funds must be used to provide direct loans to recipients. The minimum loan request is $500,000, and must be provided to individual loan recipients within 3 years of loan closing. Repayment will be annually and consist of both principal and interest, after the initial 3-year deferral.

“Having that additional capital as a line item on our capital stack definitely shows that we do have the capacity to do the work in the community and attracts or can attract more investors”

Aikue Kalima / Hawaii Community Lending

Why Should I Consider This Program?

  • Wisconsin Native Loan Fund (WINLF) secured a $1 million loan at 1% interest for 33 years, a rare funding opportunity that allowed them to finance homeownership conversions for 24 Low-Income Housing Tax Credit (LIHTC) units in Red Cliff. They followed that with an additional $875,000 to scale the model statewide.
  • Created a sustainable revenue stream by converting lending capital into long-term interest income, improving organizational self-sufficiency
  • Supported tribal homeownership programs that transfer wealth and autonomy to Native families
  • USDA programs can unlock new levels of sustainability, equity, and long-term impact.
  • This program allows loan closing to be streamlined and happen faster.
  • Having the capital as a line item shows organizational capacity and helps attract other capital.

Tips for Success with Native Relending

1. Build strong partnerships

Strong tribal partnerships and community alignment are key.

2. Be prepared when applications open.

This program isn’t open year-round, be prepared and have your application started so that you are ready to go when the funding opens.

3. Vision and readiness matter.

Have a vision and a plan before you apply, and be ready to implement that plan.

4. Have packaging experience

Become a USDA 502 loan packager first and be familiar with that program.

5. Ask for what you need

Be willing to ask for the full amount needed, don’t underestimate the request.

Eligible Uses of NCDFI Relending Demonstration Funding

Purchase an Existing Property

Build a New Property

Repair/Renovate an Existing Property

Purchase Essential Household Equipment

Such as carpet, ovens, ranges, refrigerators, washers, dryers, heating and cooling systems if the equipment is conveyed with the dwelling

Purchase and Prepare a Site

Including grading, foundation plantings, seeding or sod installation, trees, walks, fences and driveways

Must be in an Eligible Rural Area

Not to be used for income producing activities, and not have a market value in excess of the applicable area loan limit.

Relocate a Home

Who Can Apply?

  • Certified Native CDFIs

“Housing is the foundation for everything. It’s where community begins.”

David Gowens / Wisconsin Native Loan Fund.
The Boyd family poses for a family photo.

Success Story

A self employed landscaper and his family built their home after being transferred Mr. Boyd’s father’s vacant homestead lot. The family faced a lot of challenges in their homeownership process such as limited income, no money for down payment or closing costs, a low credit score, and some derogatory credit. Hawaiian Community Assets provided Mr. Boyd with HUD counseling and Hawaii Community Lending provided a debt consolidation loan to bring down his debt before providing him with a construction loan. “On January 21st, 2025, the Boyds closed on their USDA relending loan and they moved into their brand new home the following week,” said Aikue Kalima of Hawaii Community Lending. The impact on their budget was huge as well: “the Boyds went from paying $3200 in rent to $1260 in a mortgage payment, a savings of $1940 a month.” Hawaii Community Lending also assisted the family in securing down payment assistance. “We’re very happy for the Boyds.” Prior to working with Hawaii Community Lending, the Boyds feared homeownership was not for them. But as Aikue put it “we made it happen, together we made it happen.”

Watch NCN Live

This NCN Live webinar features a collaborative conversation between the Native CDFI Network and representatives from the Tribal Relations Team and Single Family Housing Department at U.S. Department of Agriculture (USDA) Rural Development. It highlights how Native CDFIs are advancing clean energy, environmental justice, and climate resilience in Tribal communities. The discussion explores the unique role Native CDFIs play in financing sustainable infrastructure, leveraging federal resources, and building local capacity to lead Native-driven climate solutions.

Interviews

In this section, we feature candid conversations between a Native CDFI leader and a USDA State Director, offering real-world perspectives on specific USDA programs impacting Native communities. Each interview highlights success stories, lessons learned, and personal insights—covering how they got started, the challenges they faced, and what made their collaboration effective. These stories provide valuable guidance and inspiration for others looking to implement similar efforts.

Native CDFI Leader/Lender

These 33-year loans at 1% interest? That’s a game changer for low-income homebuyers. It let us finally offer the kind of long-term capital that fits our mission.

David Gouwens / Wisconsin Native Loan Fund

USDA State Director

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