Braustin’s Top 5 Chattel Loan Lenders
The year 2022, as some of our readers may already know, marks 5 years for Braustin Homes. Some of our team members even coined the year, “Cinco de Braustin,” which is so fitting after reaching this core milestone.
So, what does the number 5 mean to Braustin?
It means so many things, in fact, it represents 5 years of instilling our core values into the very foundation of Braustin Homes:
- 5 years of building the company we want to work for
- 5 years of creating relationships with our customers that are so strong that they become “custy’s for life”
- 5 years of, to put it simply, figuring it out
- 5 years of playing to WIN
- 5 years of investing in ourselves and our growth as a company, for profit – for people
- And 5 years of knowing not one person is bigger than the team
In our 5th year, we hope to incorporate this trend moving forward in 2022, with blog topics that cover 5 bases, or educational vlog segments that have 5 parts to the series, etc. And, if you happened to have read the title of this article, I’m sure you are beginning to realize that trend begins TODAY!
So, without further ado – in this week’s article, we will discuss our Top 5 Chattel Loan Lenders!
Keep in mind, there are a few different options to choose from when it comes to a mobile home loan. Because mobile homes can technically be moved (however we only advise one round of transport and installation), the process to apply for and secure a mobile home loan is different than that of a traditional property.
While mobile home loans often come with higher rates than traditional home loans, they may also have more flexible requirements. Which is awesome! The families that we help, more often than not, require more flexibility, so having that available within our top 5 chattel loan lenders is absolutely vital to get those families into the homes they not only need, but also deserve!
Overall, our top pick for a chattel loan lender is… Wait, you thought we were just going to tell you right off the bat? First, we’ve got to cover the basics, so let’s dive right in!
What is a Chattel Loan?
“Chattel loans, rhymes with cattle, but doesn’t exactly moo. However, it is a loan for property that moooves!” Before you laugh, that’s how I personally remember it!
You’ve got to start somewhere, right?
Alright, now that my stand-up comedy career just tanked, more often than not, our team will mention the term chattel loan to potential home buyers – upfront.
Why? Well, the answer is quite simple.
It’s because this type of loan makes a lot of sense for most mobile home situations. If we break it down, the word “chattel” means a piece of movable property such as machinery, a vehicle, or, you guessed it, a mobile home! See, now you’re starting to think my little rhyme was actually quite helpful!
Basically, a chattel loan is a loan for movable property that is not permanently attached to land.
Easy enough, right?
Now, the question is, which lenders support this type of loan?
The great thing about Braustin Homes is – that is one less thing you have to worry about! Based on your financial situation, and housing criteria – we will pair you up with a lender that meets your needs, keeps you within budget, and gets you into the home you’ve been dreaming about for your family.
Which lender is the best choice for Chattel Loans?
Although chattel is not the only loan option available to finance a mobile home, it is considered to be the least painful and most timely option, as this type of mobile home loan is typically much shorter than with a traditional mortgage. There’s also the fact that processing fees and loan amounts are up to 50% lower on these loans.
So which lender makes the most sense for your specific financing needs?
Drumroll please… Let’s introduce Braustin’s top 5 choices in chattel loan lenders!
21st Mortgage Corporation
21st Mortgage Corporation is a full-service lender specializing in manufactured and mobile home loans.
Off to a great start already, right?
They originate and service a variety of loans to borrowers from manufactured home retailers, mortgage brokers and directly to consumers all over the United States.
We like teaming up with 21st because they are very flexible with credit scores, so much so that they funded about 50% of the homes we sold in 2021. In fact, they don’t have a minimum credit score for most loan products.
This is huge! The importance of credit scores is just one of those subjects not taught in schools, unfortunately. Most folks head into their adult years knowing little to no information about what a credit score is, what it’s based on, how it’s used to determine approval of large purchases, and most importantly how to build your score over time.
21st understands that this is a massive problem, but has the flexibility to work with applicants scoring less than 575, and even further – for “zero credit score” buyers, they offer “equity loan programs.”
Now, of course there is a repercussion with this program, which may require higher down payments – usually a minimum of 35% in the form of cash, trade, or land equity. But that program is there only if it is completely necessary to utilize.
Like we said, this financial institution helped us get around 250 out of the almost 500 families into homes last year. That’s 250 families that may not have had perfect credit, and perhaps no credit at all in some circumstances, but ended up getting approved and financed through 21st Mortgage Corporation anyways.
Up next is Cascade. This financial institution offers a range of products to suit home buyers’ needs including flexible construction and home-only loan programs. Cascade’s commitment to personalized service is reflected in their A+ rating with the Better Business Bureau (BBB).
In order to keep this A+ rating, Cascade is a little less flexible than our first choice, 21st Mortgage Corporation, but has grown to become one of the most trusted lenders in the manufactured home lending industry. Here are their requirements according to their site.
In order to qualify for a Cascade Chattel Loan, the applicant must:
- Have a minimum FICO score of 575
- Meet a minimum loan amount of $35,000
- Cannot exceed a maximum loan amount of $275,000
- Eligible manufactured homes must be new
- Minimum down payment required is 5%
- Maximum debt-to-income ratios is 50%
- 20 to 23-year loan terms
Cascade Chattel Loan Requirements:
- No repossessions on an auto loan within the last 24 months
- No collection account greater than $1,000 opened within the last 12 months
- Any active past due accounts must be paid current prior to close (collections & charge offs are excluded)
- Disputed accounts with a cumulative balance greater than $3,000 may result in a decline
- Residual income test applies to all loans and is stricter for lower credit and higher DTI ratios
Overall, Cascade is exceptional! Starting with a reasonable minimum credit score requirement, a fantastic minimum down payment percentage, and fair terms is the perfect recipe for a family to qualify for financing. We would recommend this lender to families with not perfect but established and improving credit.
CountryPlace Mortgage is the nation’s premier lender for manufactured, modular, and mobile homes. I’ll tell you one thing, they definitely make financing or refinancing your home simple and easy. Now, compared to the two lenders listed above, CountryPlace has very specific requirements to qualify for a chattel loan. But, even so, if you are thinking about purchasing a new or existing home, CountryPlace Mortgage can finance your manufactured or mobile home whether it is tied to the land or in a mobile home park.
In order to qualify for a CountryPlace Chattel Loan, the applicant must:
- Have a minimum FICO score of 620
- Meet a minimum loan amount of $100,000
- Eligible manufactured homes must have been built after 1976
- Home must not have been transported more than once
- For some loans, home must be taxed as Real Property and not be located in a park or on leased land
As you can see here with CountryPlace’s list of requirements, there isn’t quite as much flexibility. The credit score minimum is higher than the first two options, and the minimum loan amount is steep. However, we also have to keep in mind that every family that we work with has different needs. So, with that being said, we would recommend this lender to families with improved and steady credit.
Triad Financial Services
Triad Financial Services, Inc. has provided extraordinary service in lending to help homeowners reach their dream – a dream that many folks wait years upon years to get approved for. Without fail, Triad can be trusted for world class professionalism and finding competitive rates that help their customers and clients get financing, making those dreams of homeownership into a reality even sooner!
In order to qualify for a Triad Chattel Loan, the applicant must:
- Have a minimum FICO score of 600
- Minimum down payment required is 5%
- Loan amount is based on credit score
- Minimum of 2 years of re-established installment credit history if previously filed for bankruptcy
- Bankruptcy must also be discharged for a minimum of 4 years
Noticeably, Triad Financial Services’ chattel loan requirements aren’t as rigorous as CountryPlace and even offer opportunities for families who have had to file bankruptcy in the past. With documentation proving the bankruptcy has been discharged for at least 4 years, families will be able to prove their qualifications, and get into the home that they deserve.
Local Honorary Mention: Credit Human
And lucky number 5, is our friends at Credit Human!
In 2016, San Antonio Credit Union SACU became what is now known as Credit Human. The new name reflects the San Antonio values of believing in others, giving credit to the dreams of our members, and being more human by treating each other with the respect that all of us deserve.
We wanted to take a moment to highlight Credit Human because:
- They represent our San Antonio Community
- They are across the highway from our offices in Downtown San Antonio
- They align with our own company values by supporting the financial assistance to meet our customers’ mobile home buying needs.
Did you know Credit Human is an experienced manufactured home lender? If you didn’t – it’s okay, most folks don’t. We wanted to highlight them at the tail end of this article to leave a lasting impression on the conversation.
From single section to multi-section or even modular homes, they offer competitive fixed rates and flexible terms to help you finance the manufactured home that’s right for you.
For new home purchases, Credit Human offers:
- Buying a home directly from a retailer
- Single section homes: Terms of 5-20 years in length
- Multi-section homes: Terms of 5-20 years in length
For homeowners who need to refinance, Credit Human offers:
- New rates for owners to pay off existing loans
- New terms
- Title changes
- Ability to take limited equity out
- Single section homes: Terms of 5-20 years in length (homes as old as 1976) no equity available
- Multi-section homes: Terms of 5-20 years in length, equity available for homes less than 20 years old
Credit Human also offers two programs for manufactured housing. All loan programs offered are simple interest, fixed rate installment loans with no prepayment penalties.
The Standard Fixed program offers:
- One great rate for the entire term
- Security of the loan payment not changing
- There is a mandatory escrow or impound account for this program
- Lower rates available
The One-Step Fixed program offers:
- Low rates in the first 5 years of the term
- Rapid equity accumulation
- No penalties for prepayments
- No surprises, all payments are determined at closing
- Less interest than the Standard Fixed program
- Lower rates available
Overall, the neatest part about Credit Human, is of course – the human side of things.
They realize the needs of the community and designed their products accordingly. The goal is to fit even the most modest budget, so that more families get the YES they’ve been waiting for!
Some things to keep in mind after reading this article is that lenders base a lot of what goes into your loan by your existing credit score. Having any type of credit is always going to be considered better by the lender than having no credit at all, but in the case that there is no credit to work with, we want to remind you that there are still options available! We work with lenders who cover all bases, in fact, our lender ecosystem ensures that our customers’ needs are fully met.
The key take away: it is not the end of the road if your credit score is low – it’s just the beginning!