Native American Direct Loan (NADL)

What the NADL is

Most VA loans come from private lenders. The Native American Direct Loan (NADL) is different: VA itself is the lender. It is for homes on federal trust land, where it can be hard to get a private mortgage because of how the land is held.

Who can use it

You may qualify if you are:

• A Native American Veteran, or
• A non-Native American Veteran married to a Native American

Native residents of Hawaiian Homelands, American Samoa, Guam and the Commonwealth of the Northern Mariana Islands are included.

You must also:

• Have a valid Certificate of Eligibility (COE)
• Meet VA's credit standards
• Show enough income to pay the mortgage and other homeowner costs
• Live in the home as your main residence
• Buy, build or improve on trust land where the tribal government has signed a Memorandum of Understanding (MOU) with VA

What you can use it for

• Buy a home on trust land
• Build a new home on trust land
• Improve a home, such as adding energy-saving features
• Refinance an existing NADL to lower your interest rate

Benefits

• No down payment in most cases
• No private mortgage insurance
• Limited closing costs
• A fixed 30-year rate. As of November 2026, VA lists rates starting at 2.47%. Rates can change, so confirm with a NADL coordinator.
• You can reuse the benefit
• You can borrow up to the conforming loan limit with no down payment in most areas, more in some high-cost counties

Costs

• Funding fee: 1.25% for a purchase or construction loan, 0.5% for a refinance. Veterans receiving VA disability compensation are exempt.
• Closing costs such as title, appraisal and recording, which are limited.

The MOU requirement

The Memorandum of Understanding is an agreement between your tribe and VA. It covers things like how the land lease works, how liens are recorded and what happens in a default. If your tribe does not have one, a NADL is not possible yet. Tribes can contact VA to start the process.

Builders and NADL

When VA dropped the Builder ID requirement for most loans in 2025, it kept it for NADL construction on trust land. If you are building, your builder will need to be registered with VA.

Step by step: applying for a NADL

1. Check with your tribe that an MOU with VA is in place.
2. Request your COE online, through VA, or by mail.
3. Contact a NADL coordinator by email at NADL@va.gov or by phone at 888-349-7541 (TTY 711), Monday to Friday, 8 a.m. to 6 p.m. ET.
4. Get the land lease or other trust land documents ready.
5. Apply with VA and send income, credit and home documents.
6. Appraisal and review. VA orders the appraisal and checks the property.
7. Close on your loan and move in.

Tips

• Start early. Trust land paperwork, like lease approvals through the Bureau of Indian Affairs, can take time.
• Ask the coordinator about local housing programs that may help with closing costs.
• Keep copies of every document tied to the land lease.

Bottom line

The NADL fills a real gap for Veterans who want to own a home on trust land. Confirm your tribe's MOU, get your COE, and reach out to a NADL coordinator to get started.