What is a "chattel" loan in relation to manufactured homes?

A "chattel" loan specifically pertains to financing that is secured by personal property rather than real estate. In the context of manufactured homes, this means the loan is used to purchase the home itself and is secured by the home as a piece of personal property, rather than being tied to real estate.

Manufactured homes are often classified as personal property if they are not permanently affixed to land, which is why a chattel loan is appropriate for their financing. This type of loan typically allows buyers to purchase their manufactured homes without having to also buy the land it might sit on, which differentiates it from mortgages that are secured by real estate.

Understanding this distinction is crucial for anyone involved in the sales or financing of manufactured homes, as it impacts how buyers approach funding their purchases.