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Native American Direct Loan

Native American Direct Loan (NADL) Guide

Updated September 2026 · Checked against VA.gov and 38 CFR · Sources below

On this page
01

What the NADL program is and why it exists (trust land and conventional lending)

This section is being written. See the short answer above and the sources below for what is already confirmed.

02

NADL benefits at a glance: rate, down payment, PMI, funding fee, term

This section is being written. See the short answer above and the sources below for what is already confirmed.

03

Who is eligible: veteran status, Native American or spouse, Hawaiian, Alaska Native and Pacific Island eligibility

This section is being written. See the short answer above and the sources below for what is already confirmed.

04

The tribal MOU requirement and how to check if your tribe has one

This section is being written. See the short answer above and the sources below for what is already confirmed.

05

What you can use a NADL for: buy, build, improve, refinance

This section is being written. See the short answer above and the sources below for what is already confirmed.

06

NADL funding fee and closing costs (who is exempt)

This section is being written. See the short answer above and the sources below for what is already confirmed.

07

How to apply step by step (COE, NADL coordinator, appraisal, closing)

This section is being written. See the short answer above and the sources below for what is already confirmed.

08

NADL vs VA-guaranteed loan vs HUD Section 184

This section is being written. See the short answer above and the sources below for what is already confirmed.

09

What your state adds (state veteran housing programs and tribal housing authorities)

This section is being written. See the short answer above and the sources below for what is already confirmed.

10

Common questions about the Native American Direct Loan

This section is being written. See the short answer above and the sources below for what is already confirmed.

11

Common questions

What is the current NADL interest rate?
VA sets the NADL rate directly; as of 2026 it starts at 2.5% on a 30-year fixed loan. VA lowered it from 6% in 2023 to make the program more affordable.
Who qualifies for a Native American Direct Loan?
You must be a veteran or service member eligible for VA home loan benefits who is Native American (including Native Hawaiian, Alaska Native and Pacific Islander) or married to a Native American, plan to live in a home on federal trust land, meet VA credit and income standards, and your tribe must have an MOU with VA.
Is there a funding fee on a NADL?
Yes in most cases: 1.25% for purchase or construction and 0.5% for a NADL refinance. Veterans receiving VA disability compensation and certain others are exempt.
What if my tribe does not have an MOU with the VA?
You cannot get a NADL until the tribal government signs one. Ask your tribal housing authority to contact the VA NADL team; VA actively seeks new MOUs and has agreements with more than 100 tribes.
How do I apply for a NADL?
There is no online application. Get your Certificate of Eligibility, then call the NADL coordinator at 888-349-7541 or email NADL@va.gov to start the process.

Sources

  1. The current VA interest rate for NADLs starts at 2.5% and the loan is a 30-year fixed mortgage.
  2. Eligibility requires that the tribal government has a Memorandum of Understanding with VA, a valid COE, VA credit and income standards, and that the veteran will live in the home on federal trust land.
  3. As of October 2024, 114 tribes had signed NADL agreements and VA had made 1,258 NADLs totalling about $180 million since Congress created the program in 1992.
  4. NADL funding fee is 1.25% for purchase or construction loans and 0.5% for NADL refinance loans, with exemptions for veterans receiving disability compensation.
  5. The NADL program is authorized by 38 U.S.C. 3761-3765 and implemented at 38 CFR 36.4500 et seq.

Related guides

This guide is general information, not legal or financial advice, and Veterans Alliance is not affiliated with the U.S. Department of Veterans Affairs. Rules and rates change; the linked VA.gov pages are always the authoritative source.