Chattel Loans (Home-Only Loans)
Chattel loans are essentially personal property loans for the home by itself. When manufactured homes are sold new, they are titled similar to an RV and are considered personal property until they are placed on land that the manufactured home owner owns. At that point, the title is eliminated and the home is then registered and recorded as real property. It is only at that point that a manufactured home qualifies for a mortgage. If the home is on leased land, such as in a park, the only financing option is a chattel loan (or manufactured home-only loan).
Chattel loans start out with rates a few points higher than traditional mortgage rates and go up from there. Terms can be as long as 25 years on a new manufactured home, however most are either 15 year or 20 year loans. There are no pre-payment penalties (on these or any other loan products we offer) and there are no mortgage insurance requirements, which helps offset the shorter terms and higher rates.
The process for a getting a chattel loan is much cheaper and easier than what you'd encounter with a traditional mortgage. If you're interested in getting more information on a chattel loan, feel free to call us at 971-225-0595 and if you'd like to apply online for one, just click the link below!