What we verified in “Buying land or a mobile home: title, loans and risks”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. Under federal manufactured housing law, a manufactured home is a structure transportable in one or more sections that, in traveling mode, is eight feet or more wide or forty feet or more long, or that, when set up, is three hundred twenty square feet or more, designed to be used as a dwelling with or without a permanent foundation when connected to utilities.

   Sources 1 · 42 U.S.C. §5402(6): 'means a structure, transportable in one or more sections'; 'is eight body feet or more in width or forty body feet or more in length'; 'when erected on site, is three hundred twenty or more square feet'; 'designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities' · Checked October 17, 2026

2. According to the CFPB, manufactured homes are commonly called mobile homes or trailers; they are built in a factory and transported on their framework to the site; they must be built and installed under HUD standards; a main difference from a site-built home is that they may be titled as real estate or personal property; to be titled as real estate, the home generally must sit on a permanent foundation on land owned by the home's owner; if titled as personal property, it generally must be financed with a personal property loan, known as a chattel loan; chattel loans have lower origination costs and quick closings but significantly fewer consumer protections than mortgages, for example only mortgage borrowers get certain RESPA disclosures.

   Sources 2 · CFPB Finds Majority of Manufactured-Housing Borrowers Have Expensive Loans (archived release): 'Manufactured homes are commonly referred to as'; 'They are a specific type of factory-built housing'; 'Manufactured homes are required to be built and installed in accordance with standards set by the Department of Housing and Urban Development'; 'manufactured homes may be titled as either real estate property or personal property'; 'the home generally must be set on a permanent foundation on land that is owned by the home's owner'; 'it generally must be financed through a personal property loan, also known as a chattel loan'; 'While chattel loans have lower origination costs and quick closing timelines, they also have significantly fewer consumer protections than mortgage loans'; 'only mortgage borrowers are protected by provisions of the Real Estate Settlement Procedures Act' · Checked October 17, 2026

3. According to the CFPB, chattel loans are secured by the home but not the land, and generally have higher interest rates and fewer consumer protections than mortgages; some consumers choose them to avoid putting the land at risk if they default; manufactured homes often come with higher rates and limited chances to refinance; and owners who do not own the land are more likely to see their homes depreciate and have fewer protections if they fall behind.

   Sources 3 · Manufactured Housing Loan Borrowers Face Higher Interest Rates, Risks, and Barriers to Credit (archived release, page last modified Jun. 25, 2026): 'which are secured by the home but not the land'; 'In general, chattel loans have higher interest rates and fewer consumer protections than mortgages'; 'Consumers may choose to get chattel loans to avoid putting the underlying land at risk if they default on the loan'; 'often come coupled with higher interest rates and limited opportunity to refinance'; 'Consumers who do not own the underlying land are more likely to see their homes depreciate and have fewer protections if they fall behind on payments' · Checked October 17, 2026

4. According to the CFPB, you do not receive a Loan Estimate or Closing Disclosure for a manufactured or mobile home loan not secured by real estate; you receive Truth-in-Lending disclosures instead.

   Sources 4 · What is a Loan Estimate? (last reviewed Aug 9, 2024): 'A manufactured housing or mobile home loan not secured by real estate'; 'you should receive Truth-in-Lending disclosures' · Checked October 17, 2026

5. According to the CFPB, lenders can charge slightly more for loans to buy a condo, a home with more than one unit or a manufactured home.

   Sources 5 · Request and review multiple Loan Estimates (page last modified Jul. 14, 2025): 'Lenders can charge slightly more for loans to buy a condo, a home with more than one unit (for example, a duplex), or a manufactured home' · Checked October 17, 2026

6. According to HUD Handbook 4000.1, for an FHA Title II loan a manufactured home must be designed as a one-family dwelling; have at least 400 square feet; have the HUD Certification Label or a label verification showing it was built on or after June 15, 1976 under federal standards; be classified as real estate (though it need not be taxed as real estate); be built and remain on a permanent chassis; have a permanent foundation under HUD's guide; and have been transported directly from the manufacturer or dealer to the site; at closing, title must show the home and land classified as real estate, and if there were two titles, state or local requirements for purging the personal property title must be met.

   Sources 6 · Handbook 4000.1, II.A.1.b, Manufactured Housing: 'have a floor area of not less than 400 square feet'; 'evidencing the house was constructed on or after June 15, 1976'; 'be classified as real estate (but need not be treated as real estate for purposes of state taxation)'; 'be built and remain on a permanent chassis'; 'Permanent Foundations Guide for Manufactured Housing (PFGMH)'; 'have been directly transported from the manufacturer or the dealership to the site'; II.A.6: 'Good and marketable title showing the Manufactured Home and land are classified as real estate at the time of closing is required'; 'all state or local requirements for proper purging of the title (chattel or equivalent debt instrument) have been met' · Checked October 17, 2026

7. According to HUD Handbook 4000.1, FHA's Title I manufactured home loan program finances the purchase or refinance of the home alone, the lot alone for placing it, or the home and lot together; the home may be treated as personal property (chattel) when it keeps its vehicle title, or as real estate when the state or locality treats it that way and the vehicle title is surrendered and canceled; the lender may take the home as personal property collateral and at the same time a lien on the land; the borrower must own and live in the home as their principal residence; and the maximum term is 20 years and 32 days for the home, 15 years and 32 days for the lot and 20 years and 32 days for a single-section home and lot.

   Sources 6 · Handbook 4000.1, II.E.4, Title I Manufactured Home Loan Program: 'Manufactured Home Loan refers to a Loan for the purchase or refinancing of a Manufactured Home and/or the lot on which to place such home'; 'A Manufactured Home Lot Loan is used to purchase a parcel of real estate to be used as the site for the placement of a Manufactured Home unit'; 'may be treated as Personal Property or Chattel when it retains its vehicle title'; 'for which the vehicle title is surrendered and canceled'; 'concurrently place a real property lien on the land'; 'The Borrower must own and occupy the Manufactured Home as a Principal Residence'; 'Manufactured Home 20 years, plus 32 Days'; 'Manufactured Home Lot 15 years, plus 32 Days'; 'Single Unit Manufactured Home and Lot 20 years, plus 32 Days' · Checked October 17, 2026

8. According to HUD Handbook 4000.1, on a Title I loan for a home on a leased site in a community of three or more manufactured homes owned by the same entity, the lot lease must run three years or longer, be renewable for terms of one year or more and require the owner to give written notice at least 180 days before the term ends if you must move because the community is closing; if notice is late, the lease renews for another year.

   Sources 6 · Handbook 4000.1, II.E.4, Site Lease: 'the lease term must be for a term of three years or longer'; 'renewable upon the expiration of the original term by successive terms of one year or more'; 'not less than 180 Days prior to the expiration of the current lease term'; 'automatically renew for an additional one-year term' · Checked October 17, 2026

9. According to Fannie Mae's Selling Guide, the loan must be secured by the manufactured home and the borrower's interest in the land, and both must be legally classified as real property under state law; a home on leased land is eligible only if the borrower owns the home and it is in a condo or planned development approved by Fannie Mae; and investment properties are ineligible.

   Sources 7 · Selling Guide B5-2-02, Manufactured Housing Loan Eligibility (12/10/2025): 'The loan must be secured by both the manufactured home and the borrower's interest in the land on which it is situated'; 'must be legally classified as real property under applicable state law'; 'is only eligible if the manufactured home is owned (not leased) by the borrower and in a condo or PUD project approved by Fannie Mae'; 'investment properties' · Checked October 17, 2026

10. According to Fannie Mae's Selling Guide, the manufactured home must be built on a permanent chassis attached to a permanent foundation and carry the HUD Data Plate and Certification Label; the towing hitch, wheels and axles must be removed; it must be at least 12 feet wide and 400 square feet; and it must be permanently connected to a septic tank or sewage system.

    Sources 8 · Selling Guide B2-3-02, Factory-Built Housing: 'built on a permanent chassis that is attached to a permanent foundation system and evidenced by a HUD Data Plate and HUD Certification Label(s)'; 'The towing hitch, wheels, and axles must be removed'; 'The manufactured home must be at least 12 feet wide and have a minimum of 400 square feet'; 'The manufactured home must be permanently connected to a septic tank or sewage' · Checked October 17, 2026

11. Under Florida law, the owner of a mobile home permanently affixed to land the same person owns (or leases under a recorded lease of 30 years or more) can permanently retire the mobile home's title: they record the original title, the land's legal description and a sworn statement that the home is affixed to the land with the county, then ask the state to retire the title; afterwards the home is conveyed by deed together with the land.

    Sources 9 · Florida Statutes §319.261 (2026): 'the owner of a mobile home which is permanently affixed to real property owned by that same person may permanently retire the title to the mobile home'; 'a recorded leasehold interest in the real property for a term of 30 years or more'; 'records the following documents in the official records of the clerk of court'; 'that the home is permanently affixed to the real property in accordance with state law'; 'shall be conveyed by deed or real estate contract and shall only be transferred together with the property to which it is affixed' · Checked October 17, 2026

12. According to the CFPB, a construction loan is usually a short-term loan to pay for building or rehabilitating a home; it generally has higher rates than a mortgage; funds are advanced in stages as construction progresses; you may pay the balance in a lump sum or perhaps convert it to a mortgage, but if it does not convert automatically you may have to apply for a new loan; and you should compare several loans.

    Sources 10 · What is a construction loan? (last reviewed Sep 11, 2024): 'A construction loan is usually a short-term loan that provides funds to cover the cost of building or rehabilitating a home'; 'In general, construction loans have higher interest rates than longer-term mortgage loans'; 'provided in a series of advances as the construction progresses'; 'if your construction loan does not automatically convert you may have to reapply for a new loan'; 'make sure to compare multiple loans, terms, and features' · Checked October 17, 2026

13. Under the Interstate Land Sales Full Disclosure Act, if a lot sale is not exempt, the developer may not sell it without giving you a printed property report before you sign the contract; and it may not represent that roads, sewers, water, gas, electricity or recreational amenities will be provided or completed without stating so in the contract.

    Sources 11 · 15 U.S.C. §1703(a)(1)(B) ('to sell or lease any lot unless a printed property report'; 'has been furnished to the purchaser or lessee in advance of the signing of any contract or agreement') and (a)(2)(D) ('to represent that roads, sewers, water, gas, or electric service, or recreational amenities will be provided or completed by the developer without stipulating in the contract of sale or lease that such services or amenities will be provided or completed') · Checked October 17, 2026

14. Under the Interstate Land Sales Full Disclosure Act, if a lot sale is not exempt, you can revoke the contract until midnight of the seventh day after signing it, or any later time your state's law requires, and the contract must say so clearly; and if you did not get the required property report before signing, you can revoke within two years of signing.

    Sources 11 · 15 U.S.C. §1703(b) ('may be revoked at the option of the purchaser or lessee until midnight of the seventh day following the signing of such contract or agreement'; 'or until such later time as may be required pursuant to applicable State laws') and (c) ('the property report has not been given to the purchaser or lessee in advance of his or her signing'; 'within two years from the date of such signing') · Checked October 17, 2026

15. Under federal law (section 916 of the Cranston-Gonzalez Act), a colonia is an identifiable community in Arizona, California, New Mexico or Texas, in the U.S.-Mexico border region (within 150 miles of the border), determined to be a colonia on objective criteria such as lack of potable water, adequate sewage systems and decent, safe and sanitary housing, and that existed as a colonia before the law was enacted on November 28, 1990; those four states must set aside part of their federal community development funds for water, sewage and housing for colonia residents.

    Sources 12 · 42 U.S.C. §5306, note (Cranston-Gonzalez National Affordable Housing Act §916): 'means any identifiable community that'; 'is in the State of Arizona, California, New Mexico, or Texas'; 'lack of potable water supply, lack of adequate sewage systems, and lack of decent, safe, and sanitary housing'; 'within 150 miles of the border between the United States and Mexico'; 'was in existence as a colonia before the date of the enactment of the Cranston-Gonzalez National Affordable Housing Act'; 'Nov. 28, 1990'; 'for activities designed to meet the needs of the residents of colonias in the State relating to water, sewage, and housing' · Checked October 17, 2026

16. According to the CFPB, in a contract for deed, also called a land contract or installment land contract, the seller turns over the deed only after the buyer completes a series of payments and keeps legal title until then; during the contract the buyer often carries the responsibilities of ownership, such as repairs, property taxes and improvements; and the CFPB found these products often target Hispanic and immigrant communities, among others.

    Sources 13 · CFPB takes action to stop contract-for-deed investors from setting borrowers up to fail (archived release): 'the seller agrees to turn over a home's deed only after the buyer completes a series of payments'; 'the seller retains the legal title to a home until the borrower completes all the payments'; 'the borrower often carries the responsibilities of homeownership, including repairs, property taxes, and improvements'; 'these products often target Black, Hispanic, immigrant, and religious communities' · Checked October 17, 2026

17. According to LSC, it is an independent nonprofit created by Congress to fund civil legal aid for low-income people in every state, the District of Columbia and the territories; on its site you enter an address or city to find the nearest LSC-funded legal aid organization, and LawHelp.org has free legal information and forms.

    Sources 14 · I Need Legal Help: 'LSC is an independent nonprofit established by Congress in 1974 to provide financial support for civil legal aid to low-income Americans'; 'in every state, the District of Columbia, and U.S. Territories'; 'enter an address or city below to find an LSC-funded legal aid organization near you'; 'You can also visit LawHelp.org to look up information about your legal questions and find free legal forms' · Checked October 17, 2026

18. HUD-approved housing counselors give independent advice on buying, renting, defaults and credit, often at little or no cost.

    Sources 15 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you' · Checked October 17, 2026