What is a chattel mortgage?

With a chattel mortgage the lender holds an interest in the property as security/collateral for the loan. This would typically be considered a lien, for example buying a vehicle with using a secured loan. The title is still held by the buyer. However, the lender has a lien on the property that stays until the loan is paid off in full.

Are chattel mortgages right for You?

Chattel mortgages aren’t for everyone. If you want to explore buying non-movable property, a FHA loan can be a great choice with its lower down payment requirements. You can also use a conventional loan to purchase a modular home, which isn’t the case with manufactured homes. Talk with a loan expert about your home-buying options. Chattel Vs.

What are the benefits of a chattel mortgage?

Chattel mortgages carry some of the benefits of a traditional mortgage. For example, businesses that use chattel loans to purchase equipment can usually claim interest on loans and depreciation for tax purposes. The most common types of chattel mortgages relate to mobile, tiny or manufactured homes and equipment.