What is a mortgage loan in relation to manufactured homes?

A mortgage loan in relation to manufactured homes is a loan provided to purchase the home that can vary based on its classification. This is particularly important because manufactured homes can be classified in different ways, such as real property or personal property. When a manufactured home is considered real property, it is permanently affixed to land, which typically allows for a conventional mortgage to be secured against it. In contrast, if the home is classified as personal property, the financing options and loan terms might differ; often, they would involve personal loans or chattel loans that treat the home like a vehicle rather than real estate.

This classification aspect is critical because it influences the type of financing available to the buyer, as well as the terms of the mortgage. Understanding how manufactured homes are categorized helps potential buyers navigate their financing options effectively.