Chattel loan. When there's no other option — and no shame in that.

A loan secured by personal property, not real estate. For manufactured homes, chattel financing treats the home as movable property — like a vehicle — rather than real property.

Used when: you don't own the land (leased lot in a manufactured home park), the home isn't on a permanent foundation, or you're financing only the home with a separate land arrangement.

Three structural reasons: (1) the loan is secured by depreciating personal property, not appreciating real estate; (2) shorter loan terms (typically 15–20 years vs. 30); (3) limited secondary market means lenders hold the loans on their balance sheets.

Typical chattel rate premium: 2–5 percentage points above conventional real-property mortgage rates. On a $100K loan, that's $200–$500/month additional cost.

Standard chattel terms: 15, 20, or 25 years. 30-year chattel is rare and typically only available on newer, higher-quality homes with strong borrowers.

Shorter term means a higher monthly payment but significantly less total interest. 20 years is the typical sweet spot, balancing payment affordability with cost-of-capital.

Yes — with effort. Steps: (1) buy the land (or convert leasehold to fee simple); (2) install permanent foundation per HUD specs; (3) file with the county to convert title from personal property to real property; (4) refinance into FHA Title II or a conventional manufactured mortgage.

The conversion saves significantly on rate and term. Many chattel borrowers plan this conversion within 5–7 years of purchase as life circumstances allow.

620 minimum for most programs, 680+ for best rates. Specialty chattel lenders (21st Mortgage, Triad Financial, Vanderbilt) sometimes approve down to 580 with strong other factors.

Higher FICO matters more in chattel than in conventional financing because there's no government insurance, and lenders bear all the credit risk.

5–20% typical, depending on lender, FICO, and home age. Newer homes with strong borrowers can sometimes get 5% down. Older homes or weaker credit may require 15–20% down.

Down payment serves as a proxy for risk — chattel lenders weight LTV heavily because the underlying collateral depreciates.

Yes — this is the primary use case. Manufactured home parks where you own the home but lease the lot are exactly where chattel financing applies.

Lease term matters: lenders prefer leases that extend at least 5–10 years beyond the loan term. Month-to-month or short-term leases (under 5 years) significantly limit financing options.

The lender can repossess the home like a vehicle — faster process than mortgage foreclosure, with fewer borrower protections in most states. Repossession can happen 30–90 days after default depending on state law.

Practical implication: chattel loans are higher-risk for borrowers. Maintain a payment buffer and emergency fund accordingly. Don't take a chattel loan you'll struggle to service.

Disclaimer: Information shown is illustrative. Actual rates, terms, and consumer protections vary by state and lender.