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. Palm Springs leased land financing is a specialty — I work with lenders who do these loans regularly and know the tribal approval process. Call (800) 239-1103.
In Palm Springs, “leased land” means you own the home but lease the ground from the Agua Caliente Band of Cahuilla Indians. “Fee simple” means you own both. Leased land properties typically sell for 10–20% less than comparable fee simple homes — and they require a specialist lender to finance.
The Core Difference
When you buy a home in Palm Springs or the Coachella Valley, you’ll often see listings noted as “leased land” or “fee simple” — two fundamentally different ownership structures with different price points, tax treatments, and financing requirements.
| Feature | Leased Land | Fee Simple |
|---|---|---|
| Own the home? | Yes | Yes |
| Own the land? | No — leasehold interest | Yes |
| Land ownership | Agua Caliente Band | You |
| Annual ground cost | ALSA fee (to the tribe) | Included in property tax |
| Property taxes | On improvements only | Land + improvements |
| Typical price discount | 10–20% below comparable | Baseline |
| Financing availability | Specialist lenders only | Any lender |
| Tribal approval needed | Yes — sublease | No |
Price: Leased Land Is Usually Cheaper
Leased land properties in Palm Springs typically sell at a discount to comparable fee simple homes — often 10–20%, sometimes more. This is primarily because fewer buyers can finance them (fewer lenders = less demand = lower price), and because buyers perceive risk in not owning the land. For buyers who understand the financing and the lease structure, this discount can represent real value relative to the underlying property.
Taxes: Leased Land Can Be Lower
On a leased land property, California property taxes are assessed only on the improvements (the structure) — not on the land value, since the tribe holds the land. This can result in meaningfully lower annual property taxes compared to a fee simple property at the same total purchase price. However, you do pay the ALSA fee to the tribe, which partially offsets this. The net tax picture requires review of the specific lease and current ALSA fees.
Financing: The Key Difference
Fee simple properties can be financed by virtually any lender. Leased land properties require a lender with specific expertise and investor relationships for Indian land leaseholds. Major banks and online lenders almost universally decline leased land financing — they don’t have the tribal approval infrastructure or the secondary market outlets for these loans. With the right specialist, leased land financing is very doable. I work with lenders who close these loans regularly and know the Agua Caliente approval process inside out.
Should You Buy Leased Land in Palm Springs?
Leased land is a reasonable choice when: you understand the structure; you’ve verified adequate remaining lease term (most lenders require 30+ years beyond the loan maturity); you work with a lender who does these loans; and you’re comfortable with the price-to-value tradeoff. Many Palm Springs buyers specifically target leased land properties for the price discount and lower property taxes. The tribal lease structure has been stable for decades and the Agua Caliente Band has consistently renewed and extended leases — the systemic risk is lower than most buyers initially assume.
Frequently Asked Questions — Palm Springs Leased Land vs. Fee Simple
Can you get a mortgage on a leased land property in Palm Springs?
Yes — but only through lenders who specialize in Indian land leasehold financing. Most conventional lenders and major banks don’t offer leased land mortgages because the secondary market for these loans requires tribal approval processes that most lenders aren’t set up for. The lenders who do them regularly understand the Agua Caliente Band’s sublease approval requirements, the remaining lease term conditions (typically 30+ years beyond loan maturity), and how to structure the transaction so it closes cleanly. I work with these specialist lenders and have closed leased land purchases in Palm Springs — it’s very manageable with the right team.
Is it risky to buy a leased land property in Palm Springs?
The risk is lower than most buyers initially perceive. The Agua Caliente Band has been a consistent and stable landowner — they have a long track record of renewing leases and have strong economic incentives to maintain the residential lease program that generates tribal income. The main risks are: lease expiration without renewal (verify remaining term carefully), potential ALSA fee increases over time, and reduced resale pool (fewer buyers can finance leased land, which affects future liquidity). These are real considerations, but the price discount and lower property taxes often compensate. I review lease terms with every buyer before proceeding.
How much cheaper is leased land vs. fee simple in Palm Springs?
The discount varies by neighborhood, property, and remaining lease term, but 10–20% below comparable fee simple properties is typical. On a $700,000 fee simple home, a comparable leased land property might sell for $560,000–$630,000. The discount exists because the financing pool is smaller (not all buyers can or will finance leased land) and because some buyers simply won’t consider it regardless of price. For buyers who understand the structure and can get the financing, this creates a genuine opportunity to buy more property for the same dollar in Palm Springs markets they might otherwise be priced out of.
Related: Palm Springs Leased Land Mortgage | Agua Caliente Indian Land Mortgage | Ground Lease Expiration FAQ
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
🗺️ Marin City-by-City Snapshot
- Tiburon — Waterfront and view homes still command their premium in the $3M–$5M+ range, but off-water listings are negotiating for the first time in years.
- Belvedere — Thin as always; a handful of listings, mostly jumbo, and buyers here are far less rate-sensitive than the rest of the county.
- Mill Valley — The busiest submarket in Marin right now, with a median around $2.55 million and more genuine choice than buyers have had in a long time.
- Sausalito — Condos and houseboats sit longer than hillside single-family; financing for floating homes stays specialty, so line up your lender before you write.
- Corte Madera — Steady and family-driven; well-priced homes near the schools still move quickly.
- Larkspur — Downtown and Greenbrae-adjacent inventory has loosened modestly, with more room to negotiate on the older housing stock.
- Kentfield — School-district demand keeps a firm floor under prices even as days on market stretch out.
- Greenbrae — One of the better value plays in central Marin right now if you can be flexible on updates.
- San Rafael — The county’s volume leader at roughly $1.2M–$1.8M, and expanded inventory is creating real openings for move-up buyers.
- San Anselmo — Charming older homes; budget for inspections and expect sellers to entertain repair credits.
- Fairfax — Most affordable entry point in central Marin, and the first-time buyer pool here is the most rate-sensitive in the county.
- Ross — Very few listings, very high price points, and almost every deal is a jumbo or portfolio conversation.
- Novato — The most inventory in the county and the most negotiating room; strong candidate for a seller-paid rate buydown.
- Marinwood / Terra Linda — Mid-century inventory with solid value per square foot; renovation financing fits well here.
- Strawberry — Condo and townhome supply where HOA review can make or break the loan, so check it early.
- Stinson Beach / Bolinas — Coastal fire-zone properties where insurance drives the deal; specialty lending required, and get an insurance quote before you go into contract.
- Point Reyes / Inverness / Nicasio — Rural west Marin with acreage, wells, and septic in play; specialty loans, not standard conforming, and slower to structure.
💡 What Should Marin Buyers Do Right Now?
- Lock if you’re in contract. With hike odds near two-thirds and CPI landing September 11, the risk between now and the FOMC meeting skews higher, not lower. Floating into that is a gamble, not a strategy.
- Ask for a seller-paid buydown instead of a price cut. At 3.2 months of inventory, sellers are listening — and a seller-funded 2-1 buydown usually improves your payment more than an equivalent price reduction, for the same money out of their pocket.
- Use the leverage on inspections and credits. Seven weeks on market means you can write a normal offer with normal contingencies. That wasn’t true in Marin two years ago.
- Get pre-approved before you tour, especially west of the ridge. Fire-zone, acreage, and floating-home properties need lenders who actually do those loans. Learning that after you’re in contract costs you the house.
📞 Talk to Michael Directly
We’re a small family-owned brokerage in Tiburon. No call center, no phone tree, no getting handed off to whoever picked up. You call, I answer, and I’ll tell you straight whether the numbers work.
Call: (800) 239-1103
Cell: (310) 849-9124
Michael G. DiVita, Broker of Record | CA DRE #01372066 | NMLS #241655
DiVita Home Finance, Inc. | CA DRE #01818285 | NMLS #323700
Rates and market data reflect national averages published on September 4, 2026, and are for informational purposes only. They are not a commitment to lend or a quote. Your actual rate depends on credit, loan amount, property type, occupancy, and other factors.
