Issues with financing manufactured homes include whether the house is real property or personal property like a car, says About.com. Financing a manufactured home as personal property is frequently unfair because lenders do not offer the same rates that they do for real property loans.
In ideal cases, a lender titles a manufactured home as real property, explains About.com. In such cases, borrowers qualify for longer loan terms, better interest rates ad tax deductions. To qualify for such financing, a home must be permanently installed on land that the borrower owns. Personal property loans, also called chattel loans, are common in cases where the home sits on rented or leased land. The loans carry higher interest rates and shorter terms, but one positive aspect is that deposits are lower than those on real property loans.