Home-only financing for manufactured homes, also known as chattel loans, is designed for buyers who are purchasing just the home itself, without the land beneath it. This is common when placing a manufactured home in a leased-land community or mobile home park.
Key Features of Home-Only Financing
No land ownership required: The loan covers only the home, not the land it sits on.
Shorter terms: Typically up to 25 years, compared to 30-year traditional mortgages.
Higher interest rates: Rates are usually 3–5% higher than standard home loans due to increased risk for lenders.
Personal property classification: These homes are often titled as personal property (like a vehicle) rather than real estate.
Pros
Easier qualification for buyers with lower credit scores or limited down payments.
Faster approval and closing process.
Flexibility to place the home in a park or on rented land.
Cons
No equity in land, which can limit appreciation.
Higher monthly payments due to shorter terms and higher rates.
Limited refinancing options.
In Maine, lenders like Northeastern Housing Services specialize in home-only financing for manufactured homes, offering terms up to 30 years and no PMI requirements.
Don’t hesitate to get in touch with us today to discuss further!
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