What Is A Chattel Mortgage And When Would You Use One?

What Is A Chattel Mortgage And When Would You Use One?

There are a lot of options when it comes to purchasing real estate. But with so many financing choices available, it can be hard to know which is the best for your situation.

If you’re looking to purchase a movable piece of equipment or modular home, a chattel mortgage may be a good option for you. This type of loan is often used by borrowers who want to purchase a home that isn’t permanently attached to the land. Rocket Mortgage ® does not offer these types of loans.

Chattel Mortgage Definition

If you’ve ever taken out a traditional mortgage, then you know that a fixed property secures the loan. By comparison, a chattel mortgage is a loan that’s secured by a movable piece of personal property.

Many people use vehicles, equipment, or even manufactured homes as collateral on the loan. Depending on where you live, a chattel mortgage may also be referred to as a security agreement.

These types of loans typically come with shorter terms and smaller loan amounts. (more…)