Native American Direct Loan (NADL) Program

Department of Labor

Published July 06, 2021

The Native American Direct Loan Program makes home loans available to eligible Native American veterans who wish to purchase, construct, or improve a home on Federal trust land. The home must be your primary residence. (It's also possible to use the program to re-finance an existing Native American Direct Loan.)

General Program Requirements

This program is designed specifically for Native Americans who want to purchase, build, or improve a home on Federal Trust Land.

Native Americans who may qualify for these loans include:

Veterans (including Reserve and National Guard members who were called to active duty)
Active duty service members
Current Reserve and Guard members (usually after 6 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.

Length-of-service requirements apply in most cases.

Veterans must have been discharged under conditions other than dishonorable.

In addition, you must either (a) be a Native American enrolled in an American Indian tribe or Alaskan Native village, a Pacific Islander or a Native Hawaiian; OR (b) be married to such a person.

You will need a valid Certificate of Eligibility (COE). You can get one from VA or from a lender using the Automated Certificate of Eligibility (ACE) program.

If you need to obtain your COE, contact a lender about obtaining your COE or download VA Form 26-1880, complete it and mail it (with proof of service) to our Winston-Salem Eligibility Center at:

VA Loan Eligibility Center
PO Box 20729
Winston-Salem, NC 27120

You can download the form at http://www.va.gov/vaforms.

For overnight delivery:
VA Loan Eligibility Center
251 N. Main Street
Winston-Salem, NC 27155

Toll free number: 1-888-244-6711
E-mail: nceligib@vba.va.gov

Loan Terms

The interest rate is set by VA. The length of the loan is usually 30 years with payments due monthly. The length of the loan is usually 30 years with payments due monthly.

There must be a Memorandum Of Understanding (MOU) between the tribe and VA. The veteran or the veteran's spouse must be recognized as Native American subject to the jurisdiction of the tribe which controls land. The tribe must be Federally-recognized, and the home must on Federal trust land.

Interest Rate Reduction Refinancing Loans (IRRRLs) may only be done if prior loan was a NADL and there is at least 1% difference in existing loan rate and IRRRL rate.

Next Steps

The tribe must enter into a Memorandum of Understanding with VA and provide VA with copies of lease to be used (if tribal trust land) and tribal foreclosure ordinances. Veteran completes application, with VA's assistance, if necessary, and submits application to VA. If approved, VA schedules closing at veteran's convenience. If it's a construction loan, VA makes staged disbursements, through escrow account, to builder. Funds are disbursed upon approved progress inspections. More information on this may be found at http://www.benefits.va.gov/homeloans/, including copies of model MOUs, leases, & foreclosure ordinances.

You must meet basic program requirements, including the following:

The loan must be for the home you will live in.
The home must appraise for the loan amount or higher.
You must have enough income to meet your monthly mortgage payments, maintain the home, take care of other debts and obligations, and still have enough money left over to cover day to day expenses (food, gas, etc.)
You must also have a good credit history.