Most people buying a manufactured home use one of two kinds of loans. Which one fits depends on a single question: will you own the land the home sits on?
Home-only (chattel) loans
A home-only loan, which lenders also call a chattel or personal property loan, covers just the home. It’s the usual choice when the home goes in a manufactured home community or on land you lease. These loans often close fast, but they tend to have shorter terms and higher rates than a mortgage.
Land-and-home loans
When you buy the land too, or already own it, the home and land can be financed together as real property, much like a site-built house. That opens up FHA, VA, USDA and conventional programs, which usually have longer terms and lower rates. The home has to sit on a permanent foundation that meets the lender’s rules.
How Texas records it
In Texas, ownership of a manufactured home is recorded on a Statement of Ownership from the Texas Department of Housing and Community Affairs (TDHCA). When the home is on land you own, the statement can list it as real property, which is what a land-and-home loan needs.
Not sure which one fits? Run a few numbers on our payment calculator, then ask us. We’ll walk through the options for your situation and put you in touch with a lender.