I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. I’ve been in California mortgage lending since 2000 and founded DiVita Home Finance in 2007. Call (800) 239-1103.
If you’ve been shopping for a home in Palm Springs and noticed some properties are priced lower than you’d expect for such a desirable area — the land may be leased, not owned. And when the loan amount pushes into jumbo territory, most lenders are out before the conversation even starts. In this video, I break down exactly why leased land and jumbo loans create a double challenge for buyers — and what you can do about it. See also: Palm Springs leased land mortgage guide and Coachella Valley mortgage.
What Is Leased Land in Palm Springs?
When Palm Springs was developed, the federal government divided the Coachella Valley into a checkerboard pattern — alternating sections between developers and the Agua Caliente Band of Cahuilla Indians. Roughly one in three homes sits on tribal land that the homeowner leases, typically on 65- to 99-year agreements. The home is owned; the land beneath it is leased.
The Double Challenge: Leased Land + Jumbo Loan
Most lenders avoid leased land entirely — they don’t know how to underwrite tribal lease agreements, what happens at expiration, or how to handle title. Add a jumbo loan on top (any loan over $832,750 in most California counties in 2026) and the pool of lenders willing to touch it shrinks to almost zero.
Jumbo loans don’t conform to Fannie Mae or Freddie Mac guidelines — each lender sets its own rules. Most of those rules don’t include leased land in the Coachella Valley.
When a Conforming Loan Makes It Easier
If your purchase price keeps the loan under the conforming limit ($832,750 in most CA counties in 2026), the path gets clearer. Fannie Mae will purchase leased land loans — as long as the lease meets specific requirements: sufficient remaining term, proper subordination agreements from the tribe, and BIA approval where applicable.
I’ve closed conforming loans on leased land in Palm Springs regularly. The key is knowing which documents are required and how to work with the Agua Caliente tribe’s leasing department.
How I Get These Deals Done
As a mortgage broker, I have access to a wide range of lenders — including portfolio lenders who write jumbo loans against leased land properties. I know what the lease documents need to say, which lenders will go above the conforming limit on leased land, how to work through BIA approval and subordination requirements, and how to structure the file so it actually gets to the closing table. The difference between a declined loan and a closed one is usually just knowing which lender to call. I’ve been navigating California’s specialty lending market since 2000 — Palm Springs leased land is one of the niches I know well.
Frequently Asked Questions
Can I get a jumbo loan on a leased-land property in Palm Springs?
Yes — but only through portfolio lenders who specifically underwrite tribal lease agreements. The vast majority of jumbo lenders avoid leased land because they don’t know how to evaluate the tribal lease, what happens at expiration, or how to handle title in a foreclosure. I work with portfolio lenders who understand the Agua Caliente lease structure and will write jumbo loans above $832,750 on qualifying leased-land properties in Palm Springs. The process requires proper lease documentation, BIA subordination (where applicable), and a lender experienced with Coachella Valley leased land — all of which I navigate on your behalf.
What is the conforming loan limit for Palm Springs / Riverside County in 2026?
The 2026 conforming loan limit for Riverside County (which includes Palm Springs, Palm Desert, and the Coachella Valley) is $832,750 — the standard national baseline. This is the threshold below which Fannie Mae conforming financing is available; loans above this amount are jumbo loans subject to individual lender guidelines. For leased-land properties, staying under the $832,750 conforming limit opens significantly more lender options, because Fannie Mae will purchase conforming loans on leased land that meets tribal lease requirements.
How do I know if a Palm Springs home is on leased land?
The listing should disclose it — look for language like “Indian land lease,” “land lease,” or “BIA lease” in the MLS listing. Your real estate agent can also confirm by checking the title report. Leased-land properties are often priced 10–20% below comparable fee-simple (land-owned) properties, which is part of their appeal — but financing is more complex. If you’re unsure, call me before making an offer and I’ll help you determine the property’s land status and your financing options in that first conversation.
Talk to Michael Directly
DiVita Home Finance | Tiburon, CA | In lending since 2000, founded DiVita Home Finance in 2007. Michael DiVita DRE #01372066 | NMLS #241655. Company DRE #01818285 | NMLS #323700.
💬 Text: (310) 849-9124
