Individual Indian landowners or Tribes who own trust or restricted land or individuals who lease trust or restricted land can apply for a mortgage from a lender to acquire, construct, or improve a home or development for agricultural, residential, business, or wind and solar energy purposes.
Mortgages using real estate on trust or restricted land as security for the loan must be approved by a Bureau of Indian Affairs (BIA) local agency or regional office with jurisdiction over the land to be mortgaged. The BIA approves two types of mortgages in Indian Country:
Leasehold Mortgages
If you own a ground lease on trust or restricted land, you may apply for a “leasehold mortgage.” A leasehold mortgage is a loan from a bank to acquire, build, or improve a home or development that pledges your leasehold interest as a security for the debt.
Leasehold mortgages require consent from the individual Indian landowner or Tribe that you are leasing the land from.
The term of a leasehold mortgage, which is how long you have to repay the loan, cannot be longer than the term of your ground lease.
Learn more about how to apply for a leasehold mortgage. Approval for a leasehold mortgage is processed by the BIA according to 25 CFR 162.
Trust Land Mortgages
If you own an undivided interest in trust or restricted land, you may apply for a “trust land mortgage.” A trust land mortgage is a loan from a bank to acquire, build, or improve a home or development that pledges your land interest as security for the debt.
Learn more about how to apply for a trust land mortgage. Approval for a trust land mortgage is processed by the BIA according to 25 CFR 152.
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