What is the main difference between a chattel loan and a land-home loan?

A chattel loan covers only the home — used when you're renting the land in a community. A land-home loan covers both the home and the land in a single package, and the home is treated as real property.

Which loan type is faster to close?

Chattel loans typically close faster because there's no land title or real property appraisal involved. Land-home loans require an appraisal of the combined property and a more involved title process.

Can I switch from a chattel loan to a land-home loan later?

If you later purchase the land your home sits on and permanently affix the home to it, you may be able to convert the home to real property and refinance with a real-property loan. This process varies by state and lender.

Chattel Loan vs. Land-Home Loan: Which One Do You Need?

When you're financing a manufactured home, the first question isn't about rates or down payments — it's about land. Do you own the land? Are you buying it? Or are you renting a lot in a community? Your answer determines which loan type fits.

The one-sentence rule

If you're renting the land beneath your home — as most community buyers do — you need a chattel loan. If you're buying or already own the land, you need a land-home loan.

What is a chattel loan?

A chattel loan finances the home as personal property. The loan is secured by the home itself — no land involved. Because the process doesn't require a real estate appraisal or land title work, chattel loans tend to close faster and with less paperwork than real-property loans.

Best for: buyers placing a home on a leased lot in a manufactured home community or mobile home park.

What is a land-home loan?

A land-home loan — sometimes called a land-home package — finances both the manufactured home and the land together in a single loan. The home is permanently affixed to the land and treated as real property. This opens up more program options and typically longer loan terms than a chattel loan.

Best for: buyers purchasing a parcel of land, buyers who already own land and want to place a home on it, and buyers who want the home to be treated as real estate.

Side-by-side comparison

	Chattel Loan	Land-Home Loan
Land ownership required?	No	Yes (buying or already own)
What's financed?	Home only	Home + land
How home is titled	Personal property	Real property
Appraisal required?	Home only	Combined property
Closing timeline	Typically faster	More involved
Common use case	Community / leased lot	Private land / rural parcel

How to decide

Ask yourself two questions:

Will you own the land?If no — you're renting a lot in a community — chattel is your path. If yes, keep going.
Do you already own land, or are you buying it now? Either way, a land-home loan can work. If you own land outright, it may even count toward your equity in the transaction.

If you're unsure — maybe you're deciding between a community and a private lot — a lending specialist can walk you through how each scenario affects your options before you commit to a path.

Common questions

Which loan type has better rates?

Land-home loans, being secured by real property, sometimes offer more competitive rates and longer terms. But rates depend on your credit profile, loan amount, and the specific program — not just the loan type. A lending specialist can show you real numbers for your situation.

Can I switch loan types later?

If you start with a chattel loan but later purchase the lot and permanently affix the home to the land, you may be able to convert to a real-property loan through refinancing. The process varies by state. It's worth discussing if you think your situation might change.

What if I'm buying a modular home?

Modular homes are built to local building codes and are generally treated as real property from the start — even if placed on a permanent foundation you own. Land-home financing is typically the right fit for modular homes.