Cash-out chattel loans give homeowners in manufactured housing communities access to their home equity—even if they don’t own the land beneath their home. This guide covers how the loan works, eligibility requirements, benefits, and common uses.
What Is a Chattel Loan? A chattel loan is a loan for movable property. In this case, it covers the home but not the land. It’s ideal for homeowners in leased-land manufactured home communities.
What Is a Cash-Out Chattel Loan? A cash-out chattel loan refinances your existing loan and gives you the difference in cash. It’s one of the few ways to access equity in a manufactured home on leased land.
Eligibility Requirements To qualify:
- Home must be your primary residence
- Max Loan-to-Value (LTV): 65%
- Minimum loan amount: $50,000
- Land lease must be in good standing
- Credit and income must meet lender guidelines
Why Leased Land Isn’t a Dealbreaker Leased land doesn’t disqualify you. Many lenders specialize in these types of loans and understand the value of manufactured homes in land-lease communities.
Lenders That Specialize in Leased Land Certain lenders cater specifically to homeowners in manufactured housing communities, offering programs with flexible terms and competitive rates.
What Can You Use a Cash-Out Chattel Loan For? Common uses include:
- Home improvements (roof, HVAC, windows, kitchen)
- Debt consolidation
- Medical bills and emergency expenses
- Education and training
- Starting a business
Home Improvements Cash-out loans are often used to fund upgrades that enhance both comfort and resale value.
Debt Consolidation Paying off high-interest credit cards with a lower-rate loan can reduce monthly payments and long-term interest.
Managing Medical or Emergency Expenses Cash-out loans offer a way to handle unexpected costs without relying on high-interest emergency financing.
Investing in Education Use your home’s equity to support a child’s college tuition or your own career advancement.
Starting a Small Business Some borrowers use the funds to launch or grow a business, providing a potential new source of income.
Benefits of Chattel Loans
- Faster turn times than traditional mortgages
- Lower closing costs
- No land ownership required
- Tailored programs from specialized lenders
Final Thoughts Cash-out chattel loans provide a practical way to unlock home equity for manufactured homeowners on leased land. With the right lender, you can refinance with confidence and make the most of your home’s value.
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