Chattel + park home loans
A chattel loan is a loan secured by the manufactured home itself, treated as personal property, not by the land it sits on. About 70% of manufactured home buyers in the US finance this way because they sit on a leased pad, a family member's lot, or land they will never own.
Most retail mortgage lenders refuse chattel because it does not fit the standard mortgage box — there is no real property collateral, no Fannie or Freddie take-out, and the operations look more like an auto loan than a mortgage. This is the lane Mike actively runs. Cornerstone First Mortgage works directly through FHA Title I for park-home buyers, and partners with specialty chattel sources for files outside FHA guidelines.
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How chattel differs from a mortgage
- Collateral. A chattel loan is secured by the home as personal property. A mortgage is secured by real property (home + land). If the land is leased, you cannot file a mortgage on it.
- Term length. Chattel terms typically run 15 to 25 years. Mortgages on manufactured homes can run 30 years if the home is permanently affixed to owned land.
- Rates. Chattel rates are usually 300 to 500 basis points higher than a comparable real-property mortgage. The math is closer to auto financing than home financing.
- Down payment. Chattel down payments run 5% to 35% depending on credit and the specific source. Higher credit scores mean lower down — and one of the largest chattel sources will lend with no FICO at all, with 35% down.
- Taxes. Chattel homes are usually taxed as personal property (similar to a vehicle) rather than real property, which can be lower or higher depending on the state. The state pages on this site walk through this.
Programs Mike runs on chattel scenarios
- FHA Title I. The federally-backed chattel program. Limits raised in 2024 — $148,909 single-section, $237,096 multi-section combination, $43,377 lot loan. Requires the buyer to have a minimum 3-year remaining lease on the pad. Mike is one of fewer than 50 active Title I originators nationally.
- Specialty chattel partners. For files outside FHA Title I — non-approved parks, credit below 600, or loan amounts above Title I limits — Mike partners with the major specialty chattel sources. The borrower gets independent shopping rather than a captive dealer kickback.
- Land-home conversion path. If you are currently in a chattel loan and have an opportunity to buy out the pad or move to owned land, Mike maps the conversion path. Real-property classification opens up FHA Title II, VA, USDA, conventional, and non-QM programs — usually meaning a 1% to 3% rate improvement and a longer term.
Who chattel works for
- Buyers in a manufactured home community (land-lease park) where the home is set on a pad, not on owned land
- Buyers placing a new manufactured home on family-owned land where they will not be on the deed
- Refinance candidates currently holding a chattel loan from a captive dealer-financed source who want an independent rate review
- Investors buying a manufactured home for cash-flow on leased land (limited program — most non-QM DSCR sources refuse leased pads)
What chattel will not work for
- Homes on land you own with a permanent foundation — those should be financed as real property (FHA Title II, VA, USDA, conventional, or MH Advantage), almost always with better terms
- Pre-1976 mobile homes — no federal program covers anything before the HUD Code took effect on June 15, 1976
- Homes on leases shorter than 3 years remaining — FHA Title I requires 3+ years, and most specialty chattel sources require 5+ years
Find out which chattel program fits
One conversation, real numbers. Direct line: (480) 296-6513 or use the contact form.