Fact or Fiction – Manufactured Home Loans at Hames Homes
September 30, 2026
When you’re buying a manufactured home, financing can seem a little different from what you may be familiar with. That can lead to questions—and sometimes misconceptions. Let’s separate fact from fiction when it comes to financing a manufactured home at Hames Homes.
Fact – Manufactured home loans are different from a traditional mortgage.
This is true! By definition, a traditional mortgage generally includes the land along with the home. At a land-lease community like Hames Homes, you don't need to purchase the land—you purchase the home.
These loans are commonly called chattel loans, because the home itself serves as the collateral for the loan.
While the loan structure is different, the process for the homeowner can be very similar to what you would expect with a traditional mortgage. Down payment, credit history, income, and debt-to-income ratio are all important factors when applying for financing.
The distinction is important to the lender because of how the loan is structured and secured, but for homeowners, the day-to-day experience can be very similar.
Fiction – No one wants to provide manufactured home loans.
Not true! While some banks and financial institutions have chosen not to offer manufactured home financing, lenders have moved into and out of the chattel lending market throughout our years in business.
Unfortunately, changes in lending programs aren't always communicated clearly, which can create confusion for potential buyers.
That's where we can help. At Hames, we'll guide you through the financing process and help you understand your options, no matter which lender ultimately provides your loan.
Fact – Chattel loans can include escrow.
This can be true, and when available, it can make budgeting easier for homeowners.
An escrow account allows a portion of your monthly payment to be set aside for expenses such as property taxes and insurance. Instead of having to come up with a larger payment when an insurance premium or tax bill comes due, those expenses can be incorporated into your regular monthly budget.
Escrow requirements and options vary by lender, but the basic idea is simple: set aside money throughout the year so those larger bills don't come as a surprise.
Fiction – You have to use financing provided by Hames.
Absolutely not!
If you already have a lender you know and trust, we'd love to work with them. You are welcome to use the lender of your choice, and we'll do everything we can to help make the process as smooth as possible.
Have questions about financing a manufactured home? We're happy to help.
Call Clint or Curtis at 319.377.4863 and see how easy homeownership can be!