Mobile Home Financing Tips for Success

susanna.kunkel • August 6, 2025

What you need to know about mobile home financing

Financing for homes in land lease communities are called 'chattel loans' because you're financing only the house. It's structured differently as it's a titled asset, not deeded real estate. Many buyers and their agents are unaware of the ins and outs involved with chattel loans. Unfortunately, this sometimes creates unpleasant 'surprises' at settlement.

What is a Chattel Loan?

Chattel loans usually involve a "dry settlement." What does that mean? The papers are signed but the funds aren't released by the lender at the table. ABC Home Sales preferred lenders fund quickly! Usually at the table. Why is that important?

Sellers are not obligated to turn over the keys to your new home until the funding comes through. I've been at settlements where the buyers broker tried to essentially 'bully' my client into releasing keys as its a 'common practice' with mobile home sales. Imagine the challenge for a seller. Suppose funding fails and the home is already occupied! Its just too much of a risk for a seller.

My partner and I didn't realize the differences between the lender's process on our first mobile home flip. We received the down payment funds at closing but the final funds didn't come through for six weeks!

Who you work with matters!

Listing agents, buyer agents, settlement services - it's best to work with someone who specializes in this market segment. Well intended bad advice can put you in the wrong hands with unacceptable terms.

Does your agent have experience and knowledge of manufactured home construction? Before you waive inspections and select your financing options, be informed! Ask questions at your listing appointment, or buyer consultation about your potential agent's knowledge and experience in land lease communities.