A First-of-Its-Kind Partnership: Fahe and the Mni Sota Mortgage Co. Expand Native Homeownership
Homeownership in Indian Country remains one of the most chronically under-resourced areas of the U.S. housing system. Historic disinvestment, complex land status, limited mortgage products, and a shortage of lenders with the right tools and cultural understanding have long impeded Native families’ ability to build wealth through homeownership.
Fahe—known for more than four decades of work in persistent poverty communities in Appalachia—has brought its experience, network, and mission-driven mortgage capabilities to help confront these challenges. Under the leadership of Susan Hammond, Fahe’s NCDFI Relationship Manager and a member of the Penobscot Indian Nation, the organization launched a Native Lending initiative designed to expand access to mortgage capital for Native communities across the nation. Recently, that initiative has reached a major milestone: Fahe has closed its first loan with a Native CDFI partner.
Building a Model That Doesn’t Exist Anywhere Else
When Fahe set out to support Native homeownership, it turned directly to Native CDFIs—trusted, community-rooted institutions that understand their communities’ needs but often lack access to the secondary mortgage market or the specialized mortgage products required to lend on tribal land.
Susan Hammond, Relationship Manager, Native Lending Program, Fahe
Hammond emphasizes that the model Fahe has built is distinct: “Nobody is doing this kind of work—brokering loans with nonprofit Native CDFIs, offering the full range of products we have, and bringing a mission focus to the process.”
Most broker networks are for-profit, with limited product mixes and fee structures that can make loans prohibitively expensive for Native borrowers. By contrast, Fahe offers:
- Freddie Mac HeritageOne Mortgages, designed for Native borrowers and tribal areas.
- USDA and innovative in-house products, including Fahe’s Inspire 100 loan, tailored to affordability needs.
- Technical assistance and training, helping Native CDFIs build long-term mortgage capabilities even if they start from scratch.
This flexible, relationship-driven model allows Fahe to meet each CDFI where they are, remove barriers, and help them grow into confident mortgage lenders.
Spotlight on the Mni Sota Mortgage Co.: A Partner on the Rise
Fahe’s first Native Lending partnership loan was facilitated by the Mni Sota Mortgage Co. (NMLS # 2478367), a program of the Mni Sota Fund, an urban Native CDFI based in Minneapolis that serves Native people across the entire state of Minnesota—on reservations, in rural areas, and in urban neighborhoods.
When Fahe first connected with the CDFI two and a half years ago, the organization was just beginning to stand up its mortgage program. Since then, through determined effort—and with guidance from an experienced mortgage loan originator they hired—the fund has built a robust mortgage platform capable of serving Native borrowers statewide.
Mni Sota Mortgage Co. is a mortgage broker that uses Mni Sota Fund’s CDFI and nonprofit status to offer mortgage programs and down payment assistance.
Their early momentum made them an ideal first partner for Fahe’s broker network, and it allowed both Fahe and Mni Sota Mortgage Co. to learn together as they completed the inaugural loan.
Closing the First Loan: What It Means
Although Fahe’s first loan with Mni Sota Mortgage Co. was not on tribal land, it is a breakthrough. It proves that mission-based brokering between nonprofit lenders is possible—and scalable.
The borrower had attempted to qualify for down-payment assistance and products available through another for-profit broker, but none of those options fit. Fahe’s Inspire 100 loan turned out to be the best solution for the borrower’s needs, opening a path to homeownership that otherwise would not have been available.
For Native CDFIs, this model offers three critical advantages:
- Expanded product offerings they cannot access alone.
- Underwriting and investor relationships that relieve them from having to raise significant mortgage capital.
- A mission-aligned partner that treats Native borrowers with respect, patience, and culturally informed understanding.
As Hammond explains, “We work with Native CDFIs in a very different way than the general mortgage market. Our goal is to break down barriers—not to walk away when something is difficult.”
Scaling Toward Greater Access and Generational Wealth
The significance goes far beyond a single loan. The Native Lending initiative is now engaged with 10 Native CDFIs, representing tribes across the country. Six are approved/certified Fahe network partners, two more are ready to submit broker applications, and two others are receiving hands-on assistance as they build capacity. Hammond’s goal is to have all ten partnering with Fahe originating mortgage loans in Native communities in 2026.
Fahe is also developing a comprehensive, year-long training and onboarding program—including group and one-on-one sessions—to equip Native CDFIs with the systems, knowledge, and regulatory readiness needed to operate sustainable, long-term mortgage programs.
The vision is ambitious: to dramatically increase homeownership rates in Indian Country, where Native families own homes at far lower levels than the national average. Homeownership builds equity, supports education and entrepreneurship, and strengthens community vitality for generations. As Hammond notes, “We’re thinking in terms of seven generations—how homeownership brings stability and wealth building that endures.”
Why Fahe?
Fahe’s experience in Appalachia—another region marked by persistent poverty, land complexity, and historic disinvestment—uniquely positions it for this work. The organization brings authenticity, technical rigor, and deep understanding of what underserved communities need from a lender.
This work grew out of Fahe’s participation in Partners for Rural Transformation and the trusted relationships we built with Native organizations through that effort.
Native CDFIs see Fahe as a partner who not only provides access to capital, but also respects cultural values and works tirelessly to ensure Native families succeed as homeowners.
Looking Ahead
As Fahe continues expanding partnerships, building training programs, and refining products to meet Native borrowers’ needs, the organization is charting a path that no other CDFI has forged. The first loan with the Mni Sota Mortgage Co. is not just a milestone—it is proof of concept for a national model with transformative potential.
Future stories will spotlight the lenders, borrowers, and community leaders shaping this work, including deeper conversations with partners like the Mni Sota Mortgage Co. about what this partnership means for their communities.