Native American Direct Loan (NADL) Program

Native American veterans who want to buy, build, or improve a home on federal trust land have access to a unique benefit: the Native American Direct Loan (NADL) program. It offers eligible military families a path to homeownership that’s specifically designed for buying homes on tribal land, where traditional mortgage financing has historically been out of reach.

Since Congress established the program in 1992 under Public Law 102-547, the VA has signed Memorandums of Understanding (MOUs) with 118 tribal governments, and the program continues to expand.

In February 2026, the VA signed an MOU with the Squaxin Island Tribe in Washington state, giving the tribe’s seven bands and more than 550 members, including many veterans, access to the program for the first time.

If you think you might qualify for the NADL program, here’s what you need to know.

What is the Native American Direct Loan Program?

The NADL program provides direct home loans to eligible Native American military service members and veterans to finance the purchase, construction, or improvement of a home on federal trust land. It can also be used to refinance an existing NADL at a lower interest rate.

What makes the NADL different from a standard VA loan is that the VA itself acts as the lender, not a private bank or mortgage company. That distinction matters because conventional lenders have generally been unable or unwilling to offer mortgages on federal trust land, due to the complexity of land ownership structures on reservations and other tribal territories. The NADL program was created specifically to fill that gap.

The Difference Between NADL and Traditional VA Loans

Both the NADL and the standard VA loan are available to eligible military families and require a Certificate of Eligibility (COE). However, these loans differ in a few key ways:

Who Qualifies for the NADL Program?

To be eligible for a Native American Direct Loan, you’ll need to meet service requirements and identity requirements, and the property you want to finance must meet specific location criteria.

Service Eligibility

You might qualify if you’re one of the following:

• A veteran (including Reserve and National Guard members who were called to active duty)
• An active duty service member
• A current Reserve or National Guard member (usually after six years of reserve service)

Commissioned Officers of the Public Health Service and National Oceanic and Atmospheric Administration are considered to be active duty members and veterans, once discharged.

Veterans must have been discharged under conditions other than dishonorable. Length-of-service requirements apply in most cases.

Native American Status Requirements

You must also be one of the following:

• A Native American enrolled in a federally recognized American Indian tribe
• An Alaska Native village member
• A Native Hawaiian
• A Pacific Islander from American Samoa, Guam, or the Commonwealth of the Northern Mariana Islands
• A non-Native American veteran who is married to a person who meets one of the above criteria

Property and Tribal Requirements

The home must be on federal trust land, and the tribe that controls that land must have a signed Memorandum of Understanding (MOU) with VA. The MOU establishes the conditions under which the NADL program operates on tribal trust lands, including leasing arrangements and tribal foreclosure ordinances.

You can check whether your tribe has an active MOU at benefits.va.gov/homeloans/nadl_mou.asp. If your tribe doesn’t have an MOU yet, they can contact the VA to start the process.

Loan Terms

The NADL program offers straightforward terms:

• Loan length: Typically 30 years, with monthly payments
• Interest rate: Fixed rate set by the VA
• Down payment: None required
• Private mortgage insurance (PMI): Not required
• Funding fee: May apply, but can be waived for veterans with service-connected disabilities

Interest rates under the NADL program are set by the VA and can be adjusted over time based on market conditions. Because the VA sets the rate, it’s typically competitive with conventional mortgage rates. For the most current NADL interest rate, you should contact the VA’s NADL team directly.

Refinancing With the NADL

If you already have a NADL and want to lower your interest rate, you may be eligible for an Interest Rate Reduction Refinancing Loan (IRRRL). To qualify, your new rate must be at least 1% lower than your existing NADL rate.

General Program Requirements

Beyond eligibility and loan terms, you’ll also need to meet these requirements:

• The home must be your primary residence
• The home must appraise for at least the loan amount
• You must have sufficient income to cover your mortgage payment, home maintenance costs, other debts, and day-to-day living expenses
• You must have a good credit history
• You must hold a valid Certificate of Eligibility (COE)

How to Apply for the NADL Program

Getting a NADL involves a few more steps than a standard VA mortgage because the tribe’s MOU must be in place before you can proceed. Here’s how the process generally works:

1. Confirm your tribe has an MOU with the VA. Check the current MOU list at benefits.va.gov or contact the VA’s NADL team.
2. Obtain your COE. You can request your COE through the VA or through a lender using the Automated Certificate of Eligibility (ACE) program. You can also download VA Form 26-1880 and mail it with proof of service to: VA Loan Eligibility Center PO Box 20729, Winston-Salem, NC 27120.
   • For overnight delivery: VA Loan Eligibility Center 251 N. Main Street Winston-Salem, NC 27155
3. Submit your loan application. Complete the application with the VA’s assistance if needed and submit it to the VA for review.
4. Schedule closing. If approved, the VA will schedule a closing at your convenience.
5. Construction loans. If you’re building a home on federal trust land, the VA makes staged disbursements through an escrow account to your builder following approved progress inspections.

Model MOUs, lease templates, and tribal foreclosure ordinance information are available at benefits.va.gov/homeloans.

For more information about the Native American Direct Loan program:

FAQ

Q: What Tribes Qualify for the NADL Program?

Any federally recognized tribe that has signed an MOU with the VA can participate in the NADL program. As of early 2026, the VA has signed 118 MOUs with tribal governments across the U.S.

Q: Can a Non-Native American Veteran Use the NADL Program?

Yes, if you’re married to a Native American who meets the program’s eligibility requirements, you may qualify for a NADL even if you’re not Native American yourself.

Q: Can I Use a NADL to Buy Land?

The NADL program is designed for homes on federal trust land, not for purchasing land outright. The land itself is typically leased from the tribe, and the loan covers the home built or purchased on that land.

Q: What If My Tribe Doesn’t Have an MOU with the VA?

Your tribe can contact the VA to begin the MOU process. The VA’s NADL team actively works with tribal governments and communities to expand the program.