Construction Loans

New construction loans include a contingency set aside fund to cover potential cost overruns. Land purchase my be included in the financing package. Must be a MCT enrolled member to apply.

Land Status Requirements

Up to 10% of the loan amount may be used to purchase of land, which the home is to be located upon.

Own or Buying

1. When buying land with your loan proceeds you will be required to obtain a purchase agreement for the purchase of the land. This should include the price for the land, the legal description, and all necessary signatures to make it a binding agreement. Once all this information has been completed, forward the purchase agreement to the office of the Minnesota Chippewa Tribe Finance Corporation (MCTFC) and an inspection of the property will be completed to assure that the property meets the minimum requirements of the MCTFC.
2. Once the property has been inspected, the title to the property will be reviewed by a title company and lenders insurance required.

Leased Property

Contact your local reservation land office to obtain maps of available land to lease. Once you have found a parcel pf land, you will need to sign a lease agreement with the land office. An Environmental review will be done by the reservation land office prior to issuance of the lease. The term of this lease agreement needs to be for 25 years with the option to renew for another 25 years, and should be assigned to the Minnesota Chippewa Tribe Finance Corporation. An inspection of the site by the Minnesota Chippewa Tribe Finance Corporation will then take place.

Allotments

Construction on allotted lands will require that you obtain mortgage approval through the Bureau of Indian Affairs. This must be completed prior to the closing of your loan. This includes all necessary signatures by BIA offices and any other parties who may hold an interest in said land(s). Additional steps include:

Soil and Water Requirements

Soil and Water must be inspected for adequate drainage, acceptability of an individual septic system, and building suitability.

Application Requirements

1. Submission of a complete set of blue prints or a detailed floor plan of the proposed structure to be built, including the following.
   1. Floor Plan for each floor.
   2. Basement with foundation plan.
   3. Wiring diagram.
   4. Plumbing layout
   5. Heating diagram.
   6. Front, rear and side elevations.
   7. Roof section showing construction, insulation, venting, etc.
2. A complete set of construction estimates.
3. Once all estimates have been reviewed and approved. It will then be necessary for you to obtain signed contracts for all work to be performed.
4. Payment for labor performed by you during the construction of your home from the loan proceeds is NOT ALLOWED.
5. Once all the information has been received and reviewed for program compliance, your loan package will be processed for closing.
6. Upon closing, funds will then be deposited into an escrow building account on your behalf for the actual construction of your home. (See Building Account Instructions).
7. All changes in the approved construction plans require formal written change order approved by the Owner, Contractor, any Subcontractors and the Minnesota Chippewa Tribe Finance Corporation.
8. Adequate property insurance must be provided during the entire construction of your home.
9. Ninety days after occupancy, all unused building funds will be applied to the principal of your home.