Since 1992, the Native American Veteran Direct Loan (NADL) program has provided eligible Native American Veterans and their spouses the opportunity to use their Department of Veterans Affairs (VA) home loan guaranty benefit on Federal trust land.
VA provides direct home loans to eligible Native American Veterans to finance the purchase, construction, or improvement of homes on Federal Trust Land, or to refinance a prior NADL to reduce the interest rate.
To obtain a NADL, the law requires that the tribal government must have signed a Memorandum of Understanding (MOU) with the Secretary of Veterans Affairs. The MOU spells out the conditions under which the program will operate on its trust lands. See a sample MOU at this link
To see if your tribe has a MOU with the Department of Veterans Affairs, please click on this link
Native American Veterans must pay a low funding fee of 1.25% to obtain VA's direct loan to purchase a home. The funding fee to refinance a prior VA loan is a minimal 0.50%. Borrowers have the option to finance the VA funding fee or pay it in cash, but the funding fee must be paid at the time of loan closing. You never have to pay the funding fee if you are a:
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Veterans Crisis Line:
1-800-273-8255 (Press 1)
U.S. Department of Veterans Affairs | 810 Vermont Avenue, NW Washington DC 20420
Last updated May 17, 2016