VA Lowers the Native American Direct Loan Rate to 2.47% for Loans Closing On or After Oct. 1
VA cut its Native American Direct Loan rate from 2.50% to 2.47%. Eligible veterans who close on or after October 1, 2026 get 2.47% for the life of the loan, VA says.
2.47%
New NADL interest rate, down from 2.50%
Oct. 1, 2026
Loans closing on or after this date get 2.47% for the life of the loan
121
Tribal MOUs VA has signed since the program began
Where it stands
Oct. 1, 2026
VA lowers the NADL rate from 2.50% to 2.47%
Oct. 6, 2026
VA News announces the cut
Oct. 7, 2026
VA's NADL page, last updated this day, lists a rate starting at 2.47%
What happened
As of Oct. 1, 2026, VA lowered the Native American Direct Loan (NADL) interest rate from 2.50% to 2.47%. VA announced the change in VA News on Oct. 6, 2026, and its NADL page, last updated Oct. 7, 2026, now says the current rate starts at 2.47% on a 30-year fixed loan. VA is the lender on an NADL and sets this rate itself. It isn't a lender's quote and doesn't tell you what private lenders charge on VA-backed loans.
Who it affects
The NADL is for veterans who want to buy, build or improve a home on federal trust land, if the veteran is Native American or is a non-Native American veteran married to a Native American. Your tribal government must have a Memorandum of Understanding (MOU) with VA. VA says it has signed 121 MOUs since the program began. You also need a valid VA Certificate of Eligibility, you must meet VA's credit standards, and you must show enough income to cover the payments.
When it takes effect
VA says veterans who close on or after Oct. 1, 2026 will automatically receive the 2.47% rate for the life of the loan. The announcement does not say the cut applies to NADLs that closed earlier. By statute, refinancing one NADL into another requires a new rate at least one percentage point lower than the old one, so a borrower at 2.50% can't refinance just to pick up the 0.03-point cut.
What to do now
VA's page says the rate starts at 2.47% and asks borrowers to contact an NADL coordinator for their actual rate: NADL@va.gov or 888-349-7541. Before anything else, check that your tribe has an MOU. Our Native American Direct Loan guide covers eligibility, the funding fee and how to apply.
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