For Native American veterans and their families, homeownership can sometimes be difficult, especially when living on Federal trust land. Traditional mortgage lenders often won’t finance homes on tribal land due to complicated land ownership rules.
That’s why the Native American Direct Loan (NADL) program, backed by the U.S. Department of Veterans Affairs (VA), exists. This special VA program helps Native American veterans purchase, build, or improve a home on trust land — with unique benefits like no down payment and low fixed interest rates.
What Is the Native American Direct Loan (NADL)?
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The NADL program is a direct home loan provided by the VA. Unlike standard VA loans (which are issued through private lenders and guaranteed by the VA), the NADL is made directly by the VA to eligible Native American veterans or their spouses.
You can use a NADL to:
- Buy a home
- Build a new home
- Improve or repair an existing home
- Refinance an existing NADL to reduce your interest rate
Who Is Eligible for NADL?
To qualify for the Native American Direct Loan program, you must:
- Be a Native American veteran, or a veteran married to a Native American spouse
- Have a valid VA Certificate of Eligibility (COE)
- Live in (or plan to live in) the home as your primary residence
- Meet VA credit and income standards
- Your tribal government must have a Memorandum of Understanding (MOU) with the VA that allows NADL loans on its trust land
Key Benefits of NADL
- No down payment required (in most cases)
- No private mortgage insurance (PMI)
- Low fixed interest rate over 30 years
- Limited closing costs
- Reusable benefit — you can use NADL more than once
- Refinance option available to lower your rate on an existing NADL
Costs and Fees
Like all VA loans, the NADL has a funding fee:
- 1.25% for purchase or construction loans
- 0.50% if refinancing an existing NADL
Veterans with service-connected disabilities or certain surviving spouses may be exempt from the funding fee.
Where Can You Use a NADL?
NADL loans can only be used on:
- Federal trust land
- Certain tribal lands with a signed MOU with the VA
- Allotted lands, Alaska Native corporation lands, and some Pacific Island territories
If your tribe does not yet have an MOU with the VA, NADL loans cannot be issued until one is signed.
NADL vs. Standard VA Loan
Feature | NADL | Standard VA Loan |
| Who issues the loan | Directly from the VA | Private lenders (VA guarantees loan) |
| Where it applies | Trust land with tribal MOU | Any property in the U.S. |
| Down payment | Not required | Not required |
| PMI | None | None |
| Interest rate | Fixed, set by VA | Varies by lender |
How to Apply for NADL
- Check tribal MOU status – Confirm your tribe has a Memorandum of Understanding with the VA.
- Obtain your Certificate of Eligibility (COE) from VA.
- Contact the VA NADL program – Call 888-349-7541 or email NADL@va.gov.
- Submit documents – Proof of service, income, credit, and tribal enrollment if required.
- VA appraisal and approval – Property is inspected and reviewed.
- Loan closing – Sign documents, pay applicable fees, and move forward with purchase or construction.
Why Choose Loan Factory for Your VA or NADL Loan?
While NADL loans are funded directly by the VA, many Native American veterans also explore traditional VA loans for properties off tribal land. That’s where Loan Factory can make a real difference:
- Best Price Guarantee: If we can’t beat a competitor’s offer, we’ll pay you $1,000 cash.
- AI-Powered Technology (MOSO): Instantly compare 240+ lenders, track your loan in real time, and close faster.
- Transparent Process: No junk fees, no surprises — just straightforward pricing.
- Personal Guidance: Our loan officers understand VA programs and will guide you step-by-step.
At Loan Factory, we believe veterans — especially Native American veterans — deserve access to the best mortgage options available. Whether you qualify for NADL or a traditional VA loan, we’ll help you find the lowest rate and smoothest path to homeownership.
Ready to explore your options? Start your VA loan journey with Loan Factory today.
FAQ: Native American Direct Loan (NADL)
