FAQ
Frequently asked questions
The questions we hear most, answered in plain English.
- What's the difference between a chattel loan and a mortgage for a mobile home?
- A mortgage is secured by real property — land and a home permanently attached to it. A chattel loan is secured only by the home itself, titled similarly to a vehicle. If you own the land your home sits on and the home is permanently affixed, a mortgage may be available. If you're on leased land (most manufactured home communities), you'll almost always use a chattel loan.
- Can I get a mortgage for a mobile home in a rented lot?
- Generally no. Mortgages require the lender to secure a lien against real property, and on leased land you don't own the real estate — only the home. Lenders in that situation offer chattel loans instead, which is a different underwriting process with different (typically higher) rates.
- Why are chattel loan interest rates higher than mortgage rates?
- Chattel loans are secured by a depreciating personal-property asset instead of appreciating real estate, have a thinner resale/secondary market, and are riskier to underwrite. Lenders price that added risk into the rate — typically 1.5 to 2 percentage points higher than a comparable mortgage, though your actual rate depends on your lender, state, and credit.
- What is the 1976 HUD line and why does it matter?
- June 15, 1976 is when the HUD Code — the first federal manufactured-housing construction and safety standard — took effect. Homes built before that date ('pre-HUD' or often informally called 'mobile homes' in the strict sense) generally cannot be financed through conventional chattel loans or mortgages, insured, or in some cases legally placed in a community, because they predate the safety standard lenders and insurers underwrite against.
- Can I finance a mobile home with bad credit?
- It's harder and more expensive, but not automatically impossible. Chattel lenders that specialize in manufactured housing sometimes work with lower credit tiers at a higher rate and larger down payment. Building your credit for 6–12 months before applying, or exploring a co-signer or a larger down payment, typically produces meaningfully better terms than applying immediately with damaged credit.
- How much down payment do I need for a mobile home loan?
- Chattel loans commonly ask for 5–20% down depending on credit tier and lender; some retailer financing programs go lower for very strong credit. Mortgages on land-home packages often follow standard mortgage guidelines (as low as 3–5% down on conventional or FHA programs for qualifying borrowers). There's no single number — it's set by lender, loan type, and your credit profile.
- What is a land-home package?
- A land-home package finances the land purchase and the manufactured home together in a single transaction, usually through construction-to-permanent financing. You close once (or twice, depending on the lender's structure) and end up with one mortgage covering both the land and the completed, permanently affixed home.
- Can I refinance a mobile home loan?
- Yes, if you meet the new loan's requirements. The most common upgrade is converting a chattel loan into a mortgage after you've purchased the land under your home and had it permanently affixed and titled as real property — that conversion can meaningfully lower your rate. You can also refinance a chattel loan into another chattel loan for a better rate or term if your credit has improved.
- Does FHA offer loans for manufactured homes?
- Yes — FHA Title I covers manufactured home (and lot) loans, and FHA Title II can cover manufactured homes permanently affixed to owned land as real property, subject to program requirements. Terms, limits, and eligibility change periodically, so confirm current FHA Title I/II terms with a HUD-approved lender before relying on any specific figures.
- Is this website a lender or broker?
- No. FinanceMobileHomes.com is an independent educational resource. We don't originate loans, take applications, or receive compensation from any lender. The calculator and guides use illustrative figures to help you understand the process before you talk to a licensed lender.