What Are Chattel Loans Used For?
Chattel loans can finance the purchase of a variety of moveable property, including the following modular and manufactured homes.
Manufactured Homes
With a manufactured home, contractors build the structure off-site before relocating the home to an area of the buyer’s choosing. The U.S Department of Housing and Urban Development divides manufactured homes into two categories depending on their construction date.
All manufactured homes built before June 15, 1976 are considered mobile homes. Any home built after this time is a manufactured home and must adhere to strict building standards.
Modular Homes
A modular home resembles a manufactured home in appearance but is not moveable. Since most homeowners do not move their modular homes after placing them on a permanent foundation, buyers can apply for a conventional mortgage. Buyers who apply for a chattel loan to pay for their modular home must ensure their home adheres to the same local building codes as traditional housing.
How Are Chattel Loans Different From Traditional Mortgages?
The main difference between chattel manufactured home financing and a traditional mortgage is whether the borrower intends to finance a moveable or stationary property. Chattel dwelling loans are only for moveable property, while a traditional mortgage is for homes on permanent foundations. Unlike a conventional mortgage, which includes the house and land it sits on, a manufactured home chattel loan will only finance the property itself.
Chattel loans for manufactured homes are ideal for borrowers who don’t own the land where they want to place their manufactured home. For example, you can use a chattel loan to finance a manufactured home you wish to place in a land lease community, on a rental site, on family land or on land you are still paying off.
Our Interest Rates
As with any loan, your manufactured home loan’s rate depends on several factors. Your credit score, and the type of manufactured home you are purchasing will affect your loan rate.
At CIS, we offer competitive rates on manufactured home loans. During our over 50 years in business, we have helped countless people become homeowners in less time through streamlined application services. We are also a five-time winner of the prestigious Manufactured Housing Institute award.
