source:
  type: guide
  id: hud-4000-1-ii-g-section-248-mortgages-on-indian-land
  authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — g. Section
    248 Mortgages on Indian Land (09/14/2015)
  description: FHA Single Family Housing Policy Handbook 4000.1, Part II — g. Section
    248 Mortgages on Indian Land (09/14/2015).
  coverage_tier: operative
obligations:
- id: hud-4000-1-ii-g-section-248-mortgages-on-indian-land-full
  canonical_id: hud-4000-1-ii-g-section-248-mortgages-on-indian-land-full
  section: FHA Single Family Housing Policy Handbook 4000.1, Part II — g. Section
    248 Mortgages on Indian Land (09/14/2015)
  type: do
  tags:
  - regulator-direct
  - fha
  - hud-handbook
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: FHA Single Family Housing Policy Handbook 4000.1, Part II — g. Section
      248 Mortgages on Indian Land (09/14/2015)
    source_class: hud-handbook
    source_url: https://www.hud.gov/hud-partners/single-family-handbook-4000-1
    snapshot_id: 8c03836f77f317e1
    fetched_at: '2026-05-23T00:28:40Z'
    content_hash: sha256:411430f29b13f9b54a2ebb0e6f6e7087ecd2b90d0da22eb0c8c792eaa2d7d0df
    paragraph_quote: 'g. Section 248 Mortgages on Indian Land (09/14/2015) i. Definitions
      A Section 248 Mortgage on Indian Land refers to a purchase or refinance Mortgage
      covering one- to four-family dwellings on Indian Lands. Indian Land refers to
      those lands that are held by or for the benefit of Indian Tribes under some
      restriction or with some attribute peculiar to the legal status of its owners.
      Indian Tribe refers to any Indian or Alaskan native tribe, band, nation, or
      other organized group or community of Indians or Alaskan natives recognized
      as eligible for the services provided to Indians or Alaskan natives by the Secretary
      of Interior because of its status as such an entity, or that was an eligible
      recipient under Chapter 67 of title 31, United States Code, prior to the repeal
      of this section. ii. Eligibility (A) Standard The Mortgagee must obtain documentation
      from the Indian/Native American that the Indian Land/reservation has adopted
      eviction procedures acceptable to HUD. (B) Required Documentation The Mortgagee
      must obtain a certification from the Indian Tribe confirming the Indian Land/reservations
      compliance with HUD’s requirements. The Mortgagee must include the certification
      in the mortgage file and take the following measures: • certify to HUD that
      it has adopted eviction procedures and will enforce them; • permit HUD access
      to tribal lands for the purpose of servicing Properties; • agree to the lease
      form that HUD prescribes; and • enact a law that grants the tribal government’s
      court the jurisdiction to hear evictions and foreclosures so that FHA-insured
      and FHA-held Mortgages can be assured a first lien or provides that the law
      of the state in which the Property is located determines the priority of liens
      against the Property. If the reservation spans two or more states, the state
      in which the Property is located is the applicable state law. (C) Borrower Eligibility
      Only an Indian Tribe or a member of the Indian Tribe may be a Borrower. Where
      there is a co-Borrower, at least one Borrower must be an Indian Tribe or a member
      of the Indian Tribe. The Borrower must occupy the Property as their Principal
      Residence. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured
      Housing Programs Forward Mortgages 8. Programs and Products - Section 248 Mortgages
      on Indian Land (09/14/2015) Handbook 4000.1 465 Last Revised: 11/26/2025 (D)
      Property Eligibility The Property must be located on land held by the Indian
      Tribe or held by the United States government for the benefit of the Indian
      Tribe. Units in cooperatives are not eligible. The Borrower must hold a Residential
      Lease for the Property. (E) First Lien Status The Mortgage must be secured by
      a first lien on the Property that has been filed with the state recording system
      and with the Bureau of Indian Affairs, U.S. Department of the Interior. (F)
      Assumptions The Mortgagee cannot approve an assumption of a Mortgage secured
      by a Property located on an Indian Land/reservation unless the Indian Tribe
      has approved the assumption or sale of the rights to the Property securing the
      Mortgage. The Mortgagee must comply with all requirements for assumptions. (G)
      Lease and Mortgage The model Lease and model Mortgage Rider must be used in
      connection with any Section 248 Mortgages. Modifications may be made to the
      Section 248 rider with FHA approval by emailing the FHA Resource Center at answers@hud.gov
      with the following subject line: Section 248 Lease Modification. The term of
      the lease must be 25 years with a provision for an automatic extension of an
      additional 25 years. The lease must prohibit termination by either or both parties
      while the Leasehold is mortgaged under Section 248. iii. Underwriting (A) Tribal
      Leasehold and Taxes The Mortgagee must obtain tax information on the Leasehold
      from the tribe and include the payment of such taxes in the calculation of the
      Borrower’s Mortgage Payment as is done with local property taxes. (B) Mortgage
      Insurance Premiums The Section 248 program does not require an Upfront Mortgage
      Insurance Premium (UFMIP). Annual premiums are found in Appendix 1.0 – Mortgage
      Insurance Premiums. II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title
      II Insured Housing Programs Forward Mortgages 8. Programs and Products - Section
      248 Mortgages on Indian Land (09/14/2015) Handbook 4000.1 466 Last Revised:
      11/26/2025 iv. Valuation The Mortgagee must ensure that the appraisal of the
      Property meets the requirements specified in the appraisal of Single Family
      Housing on Indian Lands section of the Appraiser requirements. II. ORIGINATION
      THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward
      Mortgages'
  judgment: false
