Native American Direct Loan (NADL)

What it is

The Native American Direct Loan (NADL) is a low-interest 30-year fixed mortgage that VA itself makes to a Veteran who wants to buy, build or improve a home on federal trust land. Rates begin at 2.5 percent, according to VA. My VA home loan FAQ explains that this is the one case where VA lends directly instead of a private lender; this page covers the rest.

Who qualifies

All of these, per VA:

• Your tribal government has a Memorandum of Understanding (MOU) with VA. VA keeps a list of tribes with an MOU by state.
• You have a valid VA home loan Certificate of Eligibility (COE).
• You meet VA credit standards and have enough income for the mortgage and the costs of owning a home.
• You plan to live in the home on the trust land.

VA says this applies to Native American Veterans and to Veterans married to a Native American.

What it gives you

• Typically no down payment and no private mortgage insurance, with minimal closing costs.
• Borrowing up to the Fannie Mae and Freddie Mac conforming limit (higher in certain counties).
• A reusable benefit for more than one property.
• A refinance option for a lower rate.
• A one-time VA funding fee applies. Veterans who receive VA disability compensation are among those VA exempts from the fee; VA's fee page lists the rest.

How to get it, step by step

1. Check the VA list of tribes with an MOU. If yours is not listed, email or call the NADL team (below); VA invites tribes without an MOU to contact it.
2. Request your COE from VA.
3. Contact the NADL team to start the loan.

Traps to avoid

• The general VA loan line is not the right queue for an NADL question. Use the NADL number.
• Without a tribal MOU you cannot use this loan. Contact the NADL team first.

Where to call and where to go

Phone

• NADL team: 888-349-7541 (TTY: 711), Monday through Friday, 8:00 a.m. to 6:00 p.m. ET. Email: NADL@va.gov. Source: VA NADL page
• Veterans Crisis Line, 24/7: 988, then press 1. Source: Helpful VA phone numbers

Official pages

• VA: Native American Direct Loan
• Tribes with an MOU with VA
• Request a Certificate of Eligibility
• Funding fee and closing costs