Native American Direct Loans (NADLs) make home ownership a reality for Native American Veterans who want to buy or construct a new home or improve an existing one on Federal Trust Land. Veterans can also use a NADL to refinance an existing NADL loan in order to lower the interest rate and possibly lower your monthly mortgage payment. The interest rate for a NADL is 4.0%, but according to the Department of Veteran Affairs (VA), the rate is subject market fluctuations and may change.
No down payment nor Private Mortgage Insurance is required, and there is a limit on how much you will have to pay in closing costs. You may borrow up to $417,000 in most areas, but some counties allow you to borrow more. There is a 1.25% funding fee that can be paid in cash or financed, but it must be paid at the time of the loan closing.
There are certain Native American Veterans who are exempt from the funding fee requirements. You can get more information on these exemptions, as well as NADL eligibility requirements, from the VA’s website. Elder law attorneys also specialize in Veterans benefits and rights, so they may also be a valuable source of information.
