Buying a manufactured home without buying land at the same time is common in San Antonio. If you plan to place your home in a land‑lease community or on family land you do not own, a chattel loan may be the financing path that fits. Below, you will find how these loans work, what affects the rate you receive in 2025, and the practical pros and cons to weigh before you apply.

What is a chattel loan for a mobile home

A chattel loan is a personal property loan secured by the home itself, not by land. In manufactured housing, that usually means:

• The home sits in a land‑lease community or on land you do not own.
• The lender places a lien on the home and records the security interest with the state, using the home’s HUD serial numbers and the Texas Statement of Ownership.
• Your payment covers principal and interest on the home, and you separately pay lot rent if you live in a community.

For Texas buyers, the Texas Department of Housing and Community Affairs Manufactured Housing Division (TDHCA) regulates titling and installations. You will receive or update a Statement of Ownership and Location that reflects whether the home is personal property or classified as real property later if converted. Learn more at the TDHCA Manufactured Housing Division website: TDHCA Manufactured Housing.

Chattel loan rates in 2025, what to expect

Rates for chattel loans are generally higher than rates for traditional land‑home mortgages. As of late 2025, lenders commonly quote rates in the high single digits to low double digits for well‑qualified buyers, with higher pricing for older homes, smaller loan amounts, or challenged credit. Your Annual Percentage Rate (APR) will reflect the interest rate plus certain fees.

What drives your rate and APR:

• Credit score and history, recent delinquencies and overall depth of credit
• Down payment size, lower loan‑to‑value usually earns better pricing
• New home versus pre‑owned, model year and condition
• Term length, shorter terms can lower the rate but raise the monthly payment
• Primary residence versus second home or investment
• Home location and whether it is in a land‑lease community

Illustrative payment snapshots for a $100,000 loan, 20‑year term, principal and interest only:

These examples are for education only, not offers. Taxes, insurance, and lot rent are not included. Actual quotes depend on your application and lender programs.

If you want to explore what payments could look like for your budget and model short list, our team can help you price multiple scenarios side by side. Start with our buyer guide to understand the moving pieces, then come in to see floor plans: Mobile Homes in San Antonio, a Quick Buyer Guide.

Pros and cons of chattel loans for mobile homes

Advantages

• Faster approvals and closings, often simpler documentation than a real estate mortgage
• Works for homes in manufactured home communities or on land you do not own
• Lower closing costs in many cases, fewer third‑party real estate fees
• Flexibility on home age and configuration compared to many mortgage programs
• Potential to refinance later or convert to real property financing if you buy land and permanently attach the home

Trade‑offs

• Higher interest rates and typically higher monthly payments than land‑home mortgages
• Shorter terms are common, 10 to 23 years rather than 30 years
• The collateral is the home only, you do not build equity in land unless you later purchase it
• Resale and refinance options can be more limited for older homes
• Different default and repossession process than mortgage foreclosure, which can move faster in many states

Eligibility, terms and typical requirements

Loan program rules vary by lender, but most chattel lenders will look for the following:

• Down payment, often 5 percent to 20 percent depending on credit, home age, and occupancy
• Credit profile, many programs start around the mid‑600s, with stronger pricing as scores rise
• Income and debt, verified income and a reasonable debt‑to‑income ratio
• Owner occupancy, best pricing applies to primary residences
• Home characteristics, HUD‑code manufactured home, VINs and HUD labels intact, acceptable age and condition
• Site and utilities, approved placement in a community or on a site with proper utilities and installation plan

Government‑insured options for personal property are limited. FHA Title I can insure chattel loans on HUD‑code homes, but availability depends on participating lenders. Ask your loan officer whether Title I or other programs are offered in Texas. For general program background, see HUD’s manufactured housing program page: HUD Manufactured Housing Program.

Chattel loan vs land‑home mortgage

If you plan to buy land together with your home or you already own land and will permanently attach the home, a land‑home mortgage may reduce your rate and expand term options. Here is a side‑by‑side view:

If a land‑home package interests you, read our in‑depth guide: Land and Home Packages in San Antonio.

Total cost of ownership to include in your budget

Regardless of financing, plan a full monthly picture before you sign:

• Principal and interest payment
• Home insurance, lenders typically require hazard coverage and sometimes flood coverage if applicable
• Property taxes, in Texas manufactured homes are assessed and billed through the county appraisal district, even when located in a land‑lease community
• Lot rent and community fees if applicable, utilities or pass‑throughs vary by community
• Utilities and maintenance, HVAC service, skirting, steps and porches, pest control

Our community roundup explains what lot rent typically includes and common add‑ons around San Antonio: Best Mobile Home Parks in San Antonio, 2025 Roundup.

Texas specifics, titling and consumer protections

• Statement of Ownership and Location, TDHCA records ownership and whether the home is classified as personal or real property. For chattel loans, the home will be personal property, and the lender’s lien is recorded with TDHCA.
• Installation and permitting, Texas requires licensed installers and inspections. City or county permits may be required before setup. Homes2Go coordinates with licensed pros and local offices in and around San Antonio.
• Lender licensing, make sure your lender is properly licensed. You can verify state‑licensed lenders and review rate disclosures through the Texas Office of Consumer Credit Commissioner: Texas OCCC.

How to shop chattel loans the smart way

1. Get prequalified early, a soft pull or basic review gives you a realistic budget before you fall in love with a floor plan.
2. Ask for itemized quotes, request the note rate, APR, term, down payment, required fees, and any prepayment penalty in writing.
3. Compare total cost, look at monthly payment and lifetime interest across at least two terms.
4. Verify home eligibility, confirm the lender will finance your specific year, make, and model, plus your intended community or site.
5. Lock timing and conditions, understand how long your rate quote is valid and what can change it, such as credit updates or appraisal values.
6. Read the security agreement, confirm where the lien will be recorded and what happens if you move the home or sell it.

Red flags to watch for:

• Teaser rates without disclosing fees or APR
• Pressure to sign before you see the full purchase agreement and all add‑ons
• Confusion between personal property and real property paperwork
• Prepayment penalties that limit your ability to refinance later

When a chattel loan makes sense in San Antonio

• You are choosing a top local manufactured home community with amenities and do not plan to buy land right now
• You want a faster closing with lower upfront costs
• Your credit and income fit chattel underwriting, but you cannot meet land‑home mortgage conditions at the moment
• You expect to refinance later after credit improves or after you acquire land and convert to real property

If you are still deciding between a community or private land, our main buyer’s guide walks through the lifestyle and budget tradeoffs: Manufactured Homes in San Antonio, Options, Prices and Tips.

How Homes2Go San Antonio helps

Homes2Go specializes in matching you to the right home and the right financing path.

• Guidance on chattel versus land‑home options based on your site plan
• A wide selection of energy‑efficient floor plans and modern interiors that qualify with trusted local lenders
• Clear, itemized quotes so you can see every component of your payment and closing cash
• Coordination with licensed installers, community managers, and lenders so your home is set correctly and on schedule

We do not steer you to a single lender or program. Instead, we help you compare options side by side and choose what fits your budget and timeline.

Next steps

1. Bring your wish list and budget, start with floor plans and must‑have features.
2. Get prequalified, we can connect you with trusted local lenders who offer chattel programs.
3. Pick your site, a San Antonio area community or a private site with utilities plan.
4. Finalize your selection, lock pricing, and review a full itemized purchase agreement.
5. Close and schedule installation, then perform a careful walk‑through before move‑in.

Ready to explore models and payment scenarios tailored to you, visit our showroom or contact Homes2Go San Antonio to compare chattel loans with other financing paths.

Important note, This article is for educational purposes and is not legal, tax, or financial advice. Interest rates and program availability change frequently. Always review official disclosures and consult your lender or advisor before making a decision.

Further reading and resources:

• TDHCA Manufactured Housing Division, titling, installations and consumer info, TDHCA Manufactured Housing
• HUD Manufactured Housing Program overview, HUD Manufactured Housing Program
• Texas Office of Consumer Credit Commissioner, lender licensing and consumer resources, Texas OCCC