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If you have a manufactured home, you may have trouble refinancing. Manufactured home loans are notoriously hard to find, but lenders that offer loans for both the purchase and refinancing of manufactured homes do existsuch as NLC Loans.
Chattel mortgages are a little-known but potentially good option for someone looking to finance a manufactured home or even heavy equipment. Though these loans are smaller than conventional loans and tend to have higher rates, they are also shorter in term and more quickly paid off.
If youve ever taken out a traditional mortgage, then you know that a fixed property secures the loan. By comparison, a chattel mortgage is a loan thats secured by a movable piece of personal property. Many people use vehicles, equipment, or even manufactured homes as collateral on the loan.
Chattel loans usually have lower processing fees. Repayments can be fixed-rate or structured to a borrowers monthly cash flow. The interest on the loan is tax-deductible.
Most lenders require a minimum credit score of 580 to 620 to buy a mobile home. However, you can still get financing with a lower score. You may have to provide a larger down payment and pay a higher interest rate, though.
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People also ask

Chattel Mortgage Definition A chattel mortgage is a loan for a manufactured home or other movable piece of personal property, such as machinery or a vehicle. The movable property, called chattel, also acts as collateral for the loan.
The good news is yes, you can get a Fannie Mae loan to purchase a manufactured home. Fannie Mae is committed to its mission of expanding affordable housing and one of the ways it does this is by investing in manufactured housing loans.
With an FHA loan you can qualify for manufactured home financing with a FICO score of 500. You can even lock in a pretty competitive interest rate, even with a bad credit score. If you have a FICO score of 575, you can now choose between a Chattel loan or FHA loan.
Chattel Mortgage Definition A chattel mortgage is a loan for a manufactured home or other movable piece of personal property, such as machinery or a vehicle. The movable property, called chattel, also acts as collateral for the loan.
Chattel Mortgages A chattel loan allows for a mortgage on a property considered movable. Chattel mortgages are loan arrangements in which an item of the movable personal property acts as security for a loan. The movable property, or chattel, guarantees the loan, and the lender holds an interest in it.

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