Roughly 42 percent of loans for manufactured homes are secured by “chattel” loans secured by the home but not the land, which have higher interest rates and fewer consumer protections than mortgages, according to a report from the Consumer Financial Protection Bureau.

Findings: Based on Home Mortgage Disclosure Act data, the report also found:

  • Less than 30 percent of manufactured home loan applications are approved compared with 70 percent for loans on site-built homes.
  • The top five lenders account for more than 40 percent of manufactured housing purchase loans and nearly 75 percent of chattel lending.
  • Minority and elderly borrowers are more likely than other consumers to take out chattel loans, even after controlling for land ownership.