When it comes to financing movable property—think manufactured homes, certain business assets, or equipment—chattel mortgages are a key option to understand. In fact, a federal bureau reports that about 42% of manufactured home purchase loans use chattel financing. Unlike traditional real estate mortgages, a chattel mortgage gives you immediate ownership of the asset, but the lender retains collateral rights until the loan is paid off. To be valid, these agreements require a clear description of the asset, a signed borrower agreement, evidence of lender value, and established borrower rights to the collateral.
From my experience helping clients across residential and commercial real estate, I’ve seen that chattel loans often come with higher borrowing costs, shorter repayment terms, and fewer consumer protections than standard mortgages. However, they tend to close faster and, in some business scenarios, may offer interest and depreciation tax advantages. The right financing solution depends on your goals—if the property is attached to land, a traditional mortgage makes sense, but for movable assets or business purposes, chattel financing could be more strategic. My role is to help you weigh these options so your financing aligns with your overall financial objectives.
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