Why don’t banks finance mobile homes?

Question

Accepted Answer

Some banks and lenders don’t finance mobile or manufactured homes because they don’t meet the requirements to be considered real property. These types of homes also may not meet that bank’s property requirements.

“Banks often hesitate to finance mobile homes due to their depreciation over time, the nature of chattel loans with higher interest rates and shorter terms, the risk of the home being moved, limited resale value, and the higher susceptibility to damage and maintenance issues,” Glanzer says.