Gary Brooks Faulkner was detained Monday in Chitral, once a rumoured hiding place of bin Laden, near Afghanistan's Nuristan province, armed with a pistol, dagger, sword and night-vision equipment.
He was taken to Pakistan's northwestern city of Peshawar, where he is being interrogated by intelligence agents and investigators, officials said.
"They are asking him a lot of things, especially about the sword and dagger that look like ceremonial weapons. He said he wanted to kill Osama but killing Osama with a sword and dagger is not child's play," one investigator told AFP.
"Carrying a pistol and such a long sword is definitely a crime but we need a lot more clarifications,” he said.
"We will also try to examine him with a doctor to see whether he has any past psychological history or problems," the official added.
Police officer Mumtaz Ahmad Khan said the 50-year-old American from California, who has long hair and a beard, was sane but "frustrated".
"Investigators in Peshawar are trying to read his mind and get answers to their questions," Khan told AFP.
"He is already a blood pressure and kidney patient, and he needs a doctor," said Khan when asked whether Faulkner needed a psychologist.
But Faulkner's brother told CNN that the would-be hitman, whom the US press quickly dubbed "the American Ninja," was "not crazy."
Scott Faulkner said his sibling was motivated by patriotism and a belief in God rather than the prospect of the 25-million-dollar bounty for bin Laden, the world's most wanted man.
"He's like a bulldog and when he got this idea to go after Osama he's not going to let it go," Scott Faulkner said.
He said his brother, an independent contractor, was angered by the September 11, 2001 attacks and "taunts" by bin Laden against Christianity.
Police in Pakistan said Faulkner arrived as a tourist in Chitral on June 3, checked into a hotel, was given the customary security escort, and then vanished.
The US embassy in Islamabad said American consular officials were working with the Pakistani authorities to gain consular access to the man.
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