Mobile Home Financing Is a Different Universe From Traditional Mortgages

Mobile homes depreciate. Traditional homes appreciate. This single difference changes everything about how they are financed, from loan types to interest rates to down payment requirements. The classification matters Lenders classify mobile homes based on whether they are "real property" or "personal property." Real property: The home is permanently attached to land you own. This qualifies for conventional mortgages with standard rates. The home must be on a permanent foundation, and the title must be converted from a vehicle title to a real property title. Personal property (chattel): The home sits on rented land (a mobile home park) or is not permanently affixed. This gets a chattel loan, which is more like a car loan than a mortgage. Rates are 1-5% higher, terms are shorter (15-20 years vs. 30), and down payments are larger. The numbers Typical chattel loan terms: Interest rates: 7% to 12% Down payment: 5% to 20% Term: 15 to 20 years Maximum loan amount: varies by lender Typical rea