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Temporary VA Loan Interest Rate Drop for Native American Veterans

Native American Direct Loans

There are some 24 thousand Native Americans on active duty across all branches of military service, according to the Department of Defense.

As a group, 19% of all Native Americans have served since 9/11. Army Times reports that statistic compared to some 14% “of all other ethnicities,” according to a March 2022 article. These troops are an important part of the United States military, and their contributions are an important part of readiness and the national defense.

It’s likely that it’s with those details in mind that the Department of Veterans Affairs announced a temporary move to lower VA home loan interest rates for Native American borrowers applying for the VA Native American Direct Loan program.

The VA Native American Direct Loan (NADL) Program

Typically, the Department of Veterans Affairs does NOT lend money through its VA home loan program. There is one exception, the VA Native American Direct Loan program.

Also, the VA typically does not set or regulate VA loan interest rates except to require that they be reasonable and customary compared to other similar mortgage loans. The exception is, again, the Native American Direct Loan program.

According to the VA official site, the agency “provides direct loans to Native American Veterans — and to Veterans who are married to Native American non-Veterans — to help buy, build or improve a home on trust land.”

The VA loans approved under this program “give Native American Veterans the opportunity to obtain housing with no down payments, limited closing costs, and no monthly mortgage insurance costs.”

Learn more: Native American Direct Loans

Temporary Native American Direct Loan Interest Rate Reduction

For 24 months from March 13, 2023, the Department of Veterans Affairs offers a 2.5% interest rate on NADLs.  These loans are only for properties purchased on native trust lands.

A press release at VA.gov states, “Veterans who close their NADL loans on or after March 13 will automatically receive the 2.5% interest rate for the life of the loan. Veterans who currently have an NADL loan with an interest rate of 3.5% or higher will be able to refinance the loan to take advantage of the lower rate.”

Executive Director of VA Loan Guaranty Service John Bell is quoted in the press release on VA NADL policy, saying, “We at VA are laser-focused on serving Native American Veterans as well as they’ve served our country, and that’s what this decreased interest rate is all about.”

That said, this rate reduction is temporary at press time. It is offered for 24 months only, and unless the program becomes permanent, it expires in March 2025.

If you believe you may qualify for a VA Native American Direct Loan, contact the Department of Veterans Affairs to see how to apply for a VA NADL purchase or refinance loan.


About the author

Editor-in-Chief | + posts

Editor-in-Chief Joe Wallace is a 13-year veteran of the United States Air Force and a former reporter/editor for Air Force Television News and the Pentagon Channel. His freelance work includes contract work for Motorola, VALoans.com, and Credit Karma. He is co-founder of Dim Art House in Springfield, Illinois, and spends his non-writing time as an abstract painter, independent publisher, and occasional filmmaker.