Refinancing a mobile home is different from refinancing a traditional house. When your mobile home is financed with a chattel loan, the process comes with unique steps and requirements. This guide walks through how chattel loan refinance works, when it makes sense, and how to explore options that may better suit your financial goals.
Whether you’re aiming to lower your monthly payment, reduce your interest rate, or transition to a traditional mortgage, understanding your refinance options is key.
What Is a Chattel Loan?
A chattel loan is used to finance personal property rather than real estate. In the context of mobile homes, it’s typically applied when the home is not permanently affixed to land or when the land is leased. The loan is secured by the home itself, not the land under it.
Key traits:
- The mobile home is considered personal property, not real property
- Used when the home is in a park or on rented land
- Usually comes with shorter loan terms
- Typically has a higher interest rate than a traditional mortgage
If you took out a chattel loan years ago, it may have made sense at the time. But that doesn’t mean it’s still the right fit today.
Why Refinance a Chattel Loan?
You may want to refinance your chattel loan if:
- You now own the land the home sits on
- You want to lower your interest rate
- You’re looking to extend your loan term
- You plan to consolidate debt or cash out equity
- You want to convert to a traditional mortgage
Chattel loans usually come with higher monthly payments. If your financial profile has improved or your situation has changed, you may be eligible for better terms through a refinance.
Chattel Loan Refinance vs. Traditional Mortgage Refinance
Chattel Loan Refinance
- Still secured by the home, not the land
- No permanent foundation required
- May not need a full property appraisal
- Often easier to qualify for if land is leased
Refinance Mortgage on Manufactured Home (Real Property)
- Requires the home to be permanently affixed to land
- Home must be titled as real property
- May qualify for FHA, VA, USDA, or conventional loans
- Potential for longer loan terms and lower interest rates
If your mobile home is now on land you own, you may qualify for a refinance mortgage on a manufactured home. Visit ManufacturedHome.Loan to explore options tailored to both chattel and mortgage refinancing.
Steps to Refinance a Chattel Loan
1. Confirm Your Property Status
Is your mobile home still classified as personal property? Or has it been converted to real property?
Check the title. If your home is still titled separately from the land, it’s likely considered personal property and qualifies for chattel loan refinance.
If you own the land and the home is affixed with a permanent foundation, you may be eligible for a traditional mortgage refinance.
2. Know Your Current Loan Terms
Review your current:
- Loan balance
- Interest rate
- Monthly payment
- Loan term
- Payoff amount
Understanding your existing loan helps you evaluate the benefits of refinancing.
3. Check Your Credit and Financials
Most lenders review:
- Credit score (620+ preferred)
- Debt-to-income (DTI) ratio
- Income and employment history
- Home’s current value
Better financial health can unlock more favorable terms.
4. Explore Refinance Options
If you remain in a chattel loan:
You can look for a new chattel loan with better terms. This could mean a lower interest rate or a longer repayment period. ManufacturedHome.Loan offers solutions for mobile homeowners in this situation.
If you now qualify for a traditional mortgage:
You may be able to refinance into a real estate loan with:
- FHA: Government-backed, ideal for lower credit scores
- VA: Available for veterans and active-duty service members
- USDA: For homes in rural areas, with income and location eligibility
- Conventional: Best for those with strong credit and low DTI
Learn more about these programs at eLEND’s Manufactured Home Loan page.
5. Prepare Documentation
Lenders typically require:
- Photo ID
- Income verification (pay stubs, W-2s)
- Current loan statement
- Title or deed
- Proof of land ownership (if applicable)
- Tax and insurance documentation
Having this information ready can speed up the approval process.
6. Appraisal or Inspection (May Apply)
Some lenders require an inspection or appraisal, depending on the refinance type. Chattel loans may not always need a full appraisal.
When Does It Make Sense to Refinance?
Refinancing a mobile home loan makes sense when:
- You can secure a lower interest rate
- Monthly payments drop significantly
- The loan term better matches your financial goals
- You’re moving from a chattel loan to a real property mortgage
- You need access to cash for repairs or upgrades
Use an online refinance calculator or speak with a lending specialist to compare scenarios.
What Are the Costs of Refinancing?
Refinancing comes with fees. These may include:
- Application or origination fees
- Title transfer or recording fees
- Appraisal or inspection (if required)
- Prepayment penalties (if applicable)
Total closing costs typically range from 2% to 5% of the new loan amount. Some of these costs may be rolled into the loan.
Frequently Asked Questions
Can I refinance a mobile home without land?
Yes. Chattel loan refinance options are available for homes on leased land or in mobile home parks.
Can I convert my chattel loan into a mortgage?
Yes, if you now own the land and the home meets certain property requirements, you may be eligible for a traditional refinance mortgage.
What credit score do I need?
A score of 580 or higher is preferred, but we may have options that allow for lower scores.
Can I get cash out with a chattel refinance?
Possibly. If your home has built equity, some lenders offer cash-out options for chattel loans. This depends on loan-to-value (LTV) and lender policy.
Who offers mobile home refinance loans?
Start by reviewing programs from ManufacturedHome.Loan or eLEND. Both offer solutions tailored to mobile and manufactured home refinancing.
Should You Refinance Now?
Refinancing makes sense if your current loan is no longer aligned with your needs. If your interest rate is high or your credit profile has improved, a refinance could save money and provide financial flexibility.
If you’re unsure, speak with a lending expert at eLEND or browse options at ManufacturedHome.Loan to get a clear picture.
Final Word
Chattel loan refinance is a practical step for many mobile homeowners. Whether you’re looking to reduce payments, update your loan structure, or move toward a mortgage, it’s important to explore every path with trusted information.
Visit eLEND or ManufacturedHome.Loan to get started today.
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