How a manufactured home is titled decides how it’s financed. A home on land you own, on a permanent foundation and titled as real property, can get a regular mortgage; a home in a park or on leased land usually needs a chattel loan.
Side by side
| Chattel loan | Mortgage | |
|---|---|---|
| What secures the loan | The home only | The home and the land |
| Title | Personal property, like a vehicle | Real property |
| Where the home sits | In a park, or on leased or family land | On land you own, on a permanent foundation |
| Programs | Chattel lenders and FHA Title I | FHA, VA, USDA and conventional |
| Cost | Usually a higher rate and a shorter term | Mortgage rates and terms |
When a chattel loan fits
- The home is in a park or on land you don’t own.
- The home can’t be converted to real property.
When a mortgage fits
- You own the land, or are buying it with the home.
- The home is on a permanent foundation and built after June 1976.
- You want the lowest cost.
Guides and calculators
Questions
Do banks give loans for manufactured homes?
Many do when the home is real property with land; fewer make chattel loans. A broker can reach the lenders that specialize in each. See also: Manufactured home loans.
Can I turn a chattel loan into a mortgage?
Often, yes: if you own the land and the home is on a permanent foundation, it can be retitled as real property and refinanced into a mortgage.
What is FHA Title I?
An FHA program that can finance a manufactured home, the lot or both, including homes that aren’t titled as real property.
