Let’s talk about a financing option that’s a bit outside the traditional box: chattel mortgages. In my 35 years in the mortgage industry, I’ve seen how these loans play a unique role—especially for manufactured homes. In fact, about 42% of manufactured home purchase loans use chattel financing, according to a federal bureau.
A chattel mortgage is designed for movable personal property—not real estate. Here’s the key: you own the asset right away, while the lender holds collateral rights. For an agreement to be valid, you’ll need clear borrower rights to the property, the lender’s value in the deal, a precise asset description, and your signature on the agreement.
Compared to traditional mortgages, chattel loans usually come with higher borrowing costs, shorter repayment periods, and fewer consumer protections. On the upside, they tend to close faster. If you’re buying a home with land, a traditional mortgage is usually your best bet. But if you’re financing movable property—especially for business use—chattel loans can offer potential tax perks for interest and depreciation.
Knowing when to use each tool is where experience matters. For every unique situation, there’s a right fit—and that’s how I help clients make their next move their best move.
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