Another financing option is a chattel loan, which actually is not a type of mortgage but a personal property loan
Saturday, August 24th, 2024“Chattel loans are usually used when the mobile home will be located in a park or a manufactured home community, and they are home-only loans, excluding the land,” Andreevska says. Because these loans do not include real estate, the closing process is typically faster and less demanding, and the loan processing costs are lower than with a conventional mortgage loan.
However, the amount you can borrow is usually much smaller than with a traditional mortgage. Repayment periods are also usually limited to 15 to 20 years. “Moreover, the interest rate is higher because of the shorter loan period,” Andreevska says. “This means that overall, the monthly payment amounts often actually exceed the payments on a conventional home.”
