Native American Direct Loan (NADL): A VA Home Loan on Trust Land

What it is

Buying a home on tribal trust land can be hard. Many banks won't lend there because of how the land is owned. The Native American Direct Loan fixes that. VA lends the money directly.

You can use an NADL to:

• Buy a home on federal trust land
• Build a new home
• Improve a home, like adding energy-saving upgrades
• Refinance an existing NADL to a lower rate

The benefits are a lot like a regular VA home loan:

• Usually no down payment
• No private mortgage insurance
• Limited closing costs
• A 30-year fixed interest rate (VA posts current rates on its NADL page)
• You can use it more than once

A one-time VA funding fee may apply, unless you're exempt, such as if you get VA disability compensation.

Who qualifies

You must meet all of these:

• You're a Native American veteran, or a veteran married to a Native American.
• Your tribal government has a Memorandum of Understanding (MOU) with VA for the NADL program.
• You have a valid VA home loan Certificate of Eligibility (COE).
• You meet VA's credit standards and have enough steady income to cover the payments and costs.
• You'll live in the home on federal trust land.

Native residents of Hawaiian Home Lands, American Samoa, Guam and the Northern Mariana Islands may also be eligible.

Building a new home

If you're building, VA will want plans, a cost estimate, and proof that the home will meet local building rules. Your NADL coordinator can explain what's needed and how payments are released during construction. The home must be your primary home, not a rental or vacation property.

How it compares to a regular VA loan

A regular VA home loan comes from a private lender, and VA guarantees part of it. NADL comes straight from VA, which is why it works on trust land where banks often won't lend. Off trust land, you'd use a regular VA loan instead.

How to apply, step by step

1. Check if your tribe has an MOU with VA. Ask your tribal housing office or the NADL coordinator. If not, your tribe can work with VA to sign one.
2. Get your COE on VA.gov.
3. Contact an NADL coordinator at 888-349-7541 or NADL@va.gov. They'll walk you through the rest.
4. Gather your paperwork, like pay stubs, tax returns and credit info, plus the trust land lease or other land documents.
5. Work with your tribe on the land lease and any approvals.
6. Close on your loan and move in.

Mistakes to avoid

• Assuming a bank will lend on trust land. Many won't. NADL is built for this.
• Skipping the tribe step. Without an MOU, NADL isn't available.
• Paying the funding fee if you're exempt. If you get VA disability pay, check your COE.
• Not asking about refinancing. If rates drop, an NADL can be refinanced.

Related benefits

See our guides on the VA home loan, Specially Adapted Housing grants, HISA grants, and state veteran benefits.