Mobile Home Loans on Leased Land in Delaware (2026 Chattel Loan Guide)

Hi, I’m John Thomas, NMLS #38783, Branch Manager and Division Vice President in Newark, Delaware. For more than 20 years I have helped Delaware and Maryland families finance every kind of home – and mobile homes on leased land are one of the most misunderstood. Here’s the core of it: if you are buying a mobile home in a park or on a lot you don’t own, you can’t get an FHA, VA, USDA, or Conventional mortgage because the home isn’t real estate. What you need is a Chattel Loan – a specialized loan that treats the home as personal property, similar to how a car loan works. On this page I walk you through every guideline, credit requirement, loan product, and fee structure so you know exactly what you qualify for before you start shopping. If you’d rather just get an answer today, call my team at 302-703-0727 or Apply Online Now.

What Is a Chattel Loan and Why Do You Need One for a Mobile Home on Leased Land?

A Chattel Loan is a specialized personal property loan used to finance a mobile or manufactured home when the home sits on land the borrower does not own – most commonly a mobile home park or a lot-lease community. This is a form of personal property financing, sometimes also called a home-only loan or mobile home park financing. Because the land is leased, the home is treated as personal property rather than real estate. That classification is what separates chattel loans from every traditional mortgage program.

For a deeper breakdown of credit score requirements, down payment options, Delaware DMV transfer fees, current chattel loan rates, and how these loans work, read our full guide to Chattel Loans in Delaware.

FHA, VA, USDA, and Conventional loans all require the home to be real estate – attached to a permanent foundation on land owned by the borrower. If you want to use one of those programs, you’ll be looking at a Delaware Manufactured Home Loan instead, which requires a permanent foundation and fee-simple land ownership. If the land is yours and the address is in a USDA-eligible area, our guide to USDA manufactured home loans shows how a zero-down USDA loan can work. If your home is in a park or on leased ground, a chattel loan is the tool that gets the deal done.

What Are the Guidelines for Mobile Home Loans on Leased Land?

Mobile Homes on Leased Land require special financing because the property is not considered real estate but Chattel – which means traditional loan types will not work such as FHA, VA, USDA or Conventional, as these loan types only work for Manufactured Homes on permanent foundations. These specialized chattel loans for mobile homes have the following guidelines:

• All Loan Programs available for new, pre-owned, single, & multi-section homes
• Up to 95% Loan to Value (LTV) on Primary Residences
• Up to 85% Loan to Value (LTV) on Vacation or Secondary Homes
• All Appraisals are done through Datacomp
• New or Used Mobile Homes Eligible
• Up to 300 Month Terms (25 Years)
• Maximum Loan Amount is $450,000
• Max Debt to Income Ratio is 50% for 600+ Credit Scores (Equifax Credit Score Only)
• Max Debt to Income Ratio is 48% for 550-599 Credit Scores (Equifax Credit Score Only)
• All Borrowers on the Loan MUST have a credit score of at least 550 with Equifax
• Escrow of Homeowners Insurance & Property Taxes
• June 15, 1976 or Newer Multi/Single Section Homes with a HUD Label
• No Pre-payment Penalties
• Non-Occupying Co-borrowers only allowed to meet credit guidelines – cannot use their income
• Closing Costs may be financed, helping buyers preserve cash

Here is the same qualification data in a snapshot table so you can find the tier that matches your credit profile at a glance:

Credit Score (Equifax)	Occupancy	Max LTV	Min Down Payment	Max DTI
600+	Primary Residence	95%	5%	50%
550-599	Primary Residence	85%	15%	48%
625+	Vacation / Secondary Home	85%	15%	50%
Below 550	Any	Not Eligible	–	–

What Are the Credit Guidelines for Mobile Home Loans?

Mobile Home Loans for homes on Leased Land have credit requirements that are different than traditional home loans. Below are the credit guidelines for Mobile Home Chattel Loans:

• 600 Minimum Credit Score for Primary Residences to 95% LTV
• 550-599 Minimum Credit Score for Primary Residence to 85% LTV
• 625 Minimum Credit Score for Vacation or Secondary Homes
• All Borrowers on the Loan Must have a minimum score of 550
• Judgements and Liens MUST be paid in full, or set up on a payment plan and still be within DTI Guidelines
• Charge Offs and Non-Medical Collections must be paid in full – No open Collections
• 5 Years from Discharge of Bankruptcy
• 5 Years from Foreclosure
• No currently PAST DUE accounts allowed. Must be brought current.

Must also have one of the following to meet minimum credit guidelines for a Chattel Loan:

• Possess at least three revolving accounts within the past 12 months
• Have a 6 month installment history
• Have a documented 12 month rental history

What Are the Mobile Home Loan Products Available?

We offer three chattel loan products depending on whether you own the land, lease it, or want to purchase home and land together. Each product has its own LTV, term, and structure.

Home Only (Chattel Loan):
Offers buyer financing options on new or pre-owned, single or multi-section manufactured homes. Land can be owned or leased, including in leased site communities. Not required to be attached to real property.

Land Home:
For borrowers who are looking to secure property and their home in one payment. The home and land are included in the purchase. Only existing manufactured homes, modular, or park model homes, land and all required site improvements being purchased together. The home must be on a permanent foundation, title on the home surrendered, and the manufactured home and land taxed together as real property. It allows for different tax breaks as well as ownership of the land on which the home will be placed. The final product is classified as a real property mortgage – much like a conventional site-built mortgage.

Land Plus:
Eligible borrowers must own the land free and clear at the time of purchase. The client can use the equity in the land towards part or all of the required down payment. Financing allows for up to $25,000 in land improvements to be included in the approval, and both new and pre-owned homes qualify with no PMI required. The program offers terms of up to 360 months, with a minimum down payment of 5% and a maximum loan-to-value ratio of 95%.

How Does a Chattel Loan Compare to a Traditional Mortgage?

One of the most common questions I get is “Why is a chattel loan different from a regular mortgage?” The short answer is that a chattel loan treats the home as personal property, while a traditional mortgage treats the home and land as real estate. That single difference drives every other term. Here’s a side-by-side comparison so you can see exactly what changes.

Feature	Chattel Loan (Leased Land)	Traditional Mortgage (FHA/VA/USDA/Conv.)
What’s financed	The home only (home is personal property)	Home + land together (real estate)
Land ownership required	No – land can be leased	Yes – must own the land
Max loan term	300 months (25 years)	Up to 360 months (30 years)
Maximum loan amount	$450,000	Varies – higher loan limits available
Minimum credit score	550 Equifax	Typically 580-640 tri-merge
Max LTV on primary	95% (for 600+ scores)	96.5%-100% depending on program
Down payment assistance	Not available – must come from borrower	DSHA, NCC HEROES, and other DPA available
Foundation required	No	Yes – permanent foundation with engineering cert
HUD label required	Yes – home must be June 15, 1976 or newer	Yes – home must be June 15, 1976 or newer
Interest rate range	Typically 2-5 points higher than conventional	Market rate (lower – backed by real estate)
Best for	Buyers in mobile home parks or leased-lot communities	Buyers who own the land and want the lowest rate

If the math favors buying the land too, you might want to look at Delaware manufactured home loans with FHA, VA, or USDA financing on a permanent foundation, or our Delaware land loans page if you’re exploring buying a lot. If you’re set on a leased-land community, a chattel loan is the right path – and we close them every month. For the full list of Delaware chattel loan requirements, credit tiers, and current rates, see our dedicated guide.

Sample Borrower Example: $250,000 Mobile Home in a Delaware Park

To make the numbers concrete, here’s a common scenario we close for Delaware buyers. Your actual payment will depend on your credit score, the final interest rate at lock, and park-specific lot rent.

Who a Chattel Loan Is For (and Who It Isn’t)

Which Fees Can Be Rolled Into the Mobile Home Loan?

One of the real advantages of our chattel loan programs is that most closing costs can be rolled into the loan amount, which helps you preserve cash at closing. One Delaware-specific cost you’ll pay out of pocket at closing – and that buyers almost never hear about until the last minute – is the 3.75% Delaware DMV transfer fee on mobile homes. The specifics for the other closing costs depend on which of the three loan products you’re using.

Chattel Loans

• Lender processing fee: up to $1,700 (reduced as needed to keep high-cost fees under 5%)
• Broker compensation may be borrower-paid and rolled in
• Escrow setup (2 months cushion for taxes and insurance) can be rolled in
• First-year insurance premium may be rolled in (if borrower chooses)
• Most title/escrow settlement fees can be rolled in
• Appraisal cannot be rolled in
• Realtor fees, third-party processing fees, lot rent, and third-party escrow/notary fees cannot be rolled in

Land Plus

• Lender processing fee: up to 3% of the loan amount (reduced as needed to keep high-cost fees under 5%)
• Broker compensation may be borrower-paid and rolled in
• Land title search, titling, property report, and most settlement costs can be rolled in
• Includes 90 days of daily interest
• Similar to chattel, most costs may be rolled in

Land Home

• Lender processing fee: up to 3% of the loan amount (reduced as needed to keep high-cost fees under 5%)
• This is a TRID loan
• Title, appraisal, and prepaid items are in line with conventional financing
• Costs cannot be rolled in

Can an ITIN Borrower Purchase a Mobile Home on Leased Land?

Yes – ITIN Borrowers are accepted for all our Chattel Loan Programs. If you file taxes with an Individual Taxpayer Identification Number rather than a Social Security Number, you can still qualify to purchase a mobile home on leased land. If you also want other loan options, check our ITIN Home Loan Program page for additional programs. The guidelines for ITIN borrowers to qualify for a mobile home on leased land are as follows:

• ITIN Applicants must have a minimum credit score of 550 or above
• US Government issued non-resident identification and ITIN card required
• Applicants with both Social Security Number (SSN) and ITIN will have a credit check run on both numbers
• ITIN numbers will be verified through www.tincheck.com

What Should You Identify on the Mobile Home Title Before Closing?

Because a mobile home on leased land is titled like a vehicle rather than recorded like real estate, the title itself drives the whole closing process. The vehicle title transfer in Delaware runs through the Division of Motor Vehicles rather than the county Recorder of Deeds, and we manage that handoff at closing. The most common funding delays I see are caused by title issues that nobody caught until it was too late. To avoid delays in funding, please double check these common scenarios for title on the mobile home:

• Titles in the Name of a Trust
  • Full trust agreement or certification of trust required (varies by state)
  • If trustee is deceased – need death certificate to transfer to successor trustee
• Deceased Seller
  • Rules vary by state and how ownership is listed
  • Two owners with “or” – surviving owner can transact without deceased documentation
  • Two owners with “and” – requires further review by Title Department
  • Single Owner – probate or small estate process required; will alone not sufficient. Typically need death certificate & probate status
• POA for Seller
  • Full POA document must be provided before closing
• Seller on Title
  • Current seller must match title exactly
  • Cannot close if title is still in previous owner’s name

Can You Refinance a Mobile Home on Leased Land?

Yes, you can refinance a mobile home on leased land using a chattel refinance. This is useful if rates have dropped since you bought, if you want to change the term, or if you need to add or remove a co-applicant. The guidelines for qualifying for a refinance of your mobile home or manufactured home on leased land are as follows:

• No Seasoning Requirements for Rate and Term Refinance
• Cash Out Refinance is NOT Allowed
• You can Add or Remove a Co-applicant from Ownership

Can You Convert a Chattel Loan to a Traditional Mortgage Later?

Potentially, yes – but only if your situation changes in specific ways. If you later purchase the land underneath your home, install the home on a permanent foundation, surrender the vehicle title, and have the home and land taxed together as real property, you may be able to refinance the chattel loan into a traditional mortgage. That conversion can unlock a longer term (up to 30 years), a lower interest rate, access to FHA/VA/USDA/Conventional programs, and the possibility of cash-out refinancing in the future.

The conversion isn’t automatic – it requires engineering certification for the permanent foundation, a new appraisal of the real property, and a fresh application under the new loan program. If you think you may eventually want to buy your lot and convert, it’s worth talking through the timing and costs before you start. Call me at 302-703-0727 and we can map out a plan.

Mobile Home Park Market in Delaware: What to Know

Delaware – particularly Sussex County – has one of the strongest mobile home park markets on the East Coast. Sussex County alone has more than 89 mobile home parks, concentrated around Lewes, Rehoboth Beach, Millsboro, and Seaford. Kent County and New Castle County also have park communities, though inventory is smaller. Buyers should expect the following when shopping leased-land communities:

• Lot rent ranges widely – typical monthly lot rent in Sussex County runs from around $340 to $875, depending on community, amenities, and whether the park is near the beach. Popular waterfront communities like Pot-Nets, Rehoboth Bay MHP, and Angola Beach sit at the higher end.
• Lease escalators – Under 25 Del. C. Sec. 7050-7054, Delaware caps annual lot rent increases in most communities. Confirm your lease terms and any pass-through fees before you sign.
• Park approval – Most parks require the buyer to be approved by park management. Start this process in parallel with your loan application.
• Lease term vs loan term – Your land lease should cover the duration of your loan. Short leases can be a problem at underwriting.
• Age-restricted (55+) communities – Many Sussex County parks are 55-plus. Factor that into your search early.

If you’re a first-time buyer exploring mobile homes in parks, the other option is to buy the home on land you own using a manufactured home loan with FHA, VA, or USDA financing. That path can also stack with Delaware Down Payment Assistance and first time home buyer programs, which chattel loans cannot.

Major Delaware Mobile Home Parks We Finance

We close chattel loans across Delaware’s largest registered mobile home parks. The list below is not exhaustive – Delaware has nearly 200 registered manufactured home communities per the Delaware Manufactured Home Relocation Authority (DEMHRA). If your target park isn’t named, just call us – we can almost always finance it if the park is properly zoned, the lease term covers the loan, and the home meets HUD label requirements.

Shopping a specific park? Call me at 302-703-0727 and I’ll tell you within the first 10 minutes whether financing that particular community is realistic based on the park’s registration status, zoning, and your credit profile.

Why Delaware’s Lot Rent Law Matters for Your Chattel Loan

One thing that separates Delaware from most states is that Delaware has specific statutes governing manufactured home community lot rents. Under 25 Del. C. Sec. 7050 through 7054, registered parks are subject to rules around rent increases, pass-through fees, lease renewal, and notice requirements. From an underwriting standpoint, this matters more than most buyers realize.

Here’s why these laws affect your chattel loan approval, your debt-to-income calculation, and your long-term housing stability:

• Lot rent stability protects your DTI over time. Because Delaware law limits how and when a park can raise lot rent, your housing cost has a ceiling of predictability most rental arrangements don’t offer. We don’t include lot rent in the loan’s debt-to-income ratio the way a condo association fee would be included, but the stability still matters for your real-world budget.
• Your lease term must cover your loan term. Chattel underwriters review the length of your written lot lease and require it to meet or exceed the loan term (or be a standard renewable lease with park tenure rights). If your lease is month-to-month, we may need a lease extension letter from park management before we can close.
• Park registration status affects eligibility. The park must be properly registered with the Delaware Manufactured Home Relocation Authority (DEMHRA) for financing. If the community isn’t on the DEMHRA registry, financing becomes much more difficult.
• Pass-through fees and special assessments. Some leases allow the park to pass through property tax increases or utility costs. Read your lease carefully – these can effectively raise your housing cost outside the rent-cap protection.
• The vehicle title transfer process is Delaware-specific. A mobile home on leased land is titled through the Delaware Division of Motor Vehicles like a vehicle, not recorded with the county Recorder of Deeds like real estate. Personal property financing moves through a different workflow, and we manage that title transfer at closing so you don’t have to.

The net effect: Delaware is actually a relatively buyer-friendly state for mobile home park living, compared to states with no rent control on lots. The catch is that your lease terms, park registration, and title transfer all have to line up for the loan to close cleanly. That’s the work we do on every file.

Where We Help Delaware & Maryland Buyers With Mobile Home Loans on Leased Land

The John Thomas Team closes chattel loans for mobile and manufactured homes on leased land throughout Delaware and the Eastern Shore of Maryland. We know the local parks, the Datacomp appraisers who cover each region, and the county clerk title processes. We regularly help buyers in:

We also close chattel loans throughout Maryland, with strong experience on the Eastern Shore in Cecil, Kent, Queen Anne’s, Caroline, Talbot, Dorchester, Wicomico, Worcester, and Somerset counties. If you are shopping parks in any of these areas and want a straight answer on what you qualify for, call 302-703-0727 or Schedule Appointment.

How Do You Apply for a Mobile Home Loan on Leased Land?

If you would like to qualify for a Mobile Home Loan or Manufactured Home Loan to purchase or refinance a property as your primary residence, a vacation home, or a secondary home, then you can call the John Thomas Team with AnnieMac Home Mortgage at 302-703-0727, Schedule Appointment, or Apply Online Now. We’ll pull a soft Equifax credit check, review your income, confirm your target park and home, and give you a clear answer on what you qualify for – usually within 24 hours.

Frequently Asked Questions About Chattel Loans for Mobile Homes on Leased Land

Last Updated: April 2026 · John Thomas Team with AnnieMac Home Mortgage · Mortgage content reviewed by John R. Thomas, NMLS #38783.

John R. Thomas, NMLS #38783 | John Thomas Team with AnnieMac Home Mortgage | AnnieMac Home Mortgage NMLS #338923 | 248 E Chestnut Hill Rd, Newark, DE 19713 | 302-703-0727 | delawaremortgageloans.net
AnnieMac Home Mortgage is an Equal Housing Lender. State licensing: Look up John R. Thomas, NMLS #38783, on NMLS Consumer Access.
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