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.

Can a chattel mortgage be used for a mobile home?

Real property includes land and property that cannot be easily removed from the land. When a chattel mortgage is used for a large, movable asset like a manufactured home — called a mobile home before June 15, 1976 — or a piece of equipment (the “chattel”), the asset is held as collateral on the loan.