Understanding Mobile Home Interest Rates in 2026: What Buyers Need to Know

If you’re thinking about buying a mobile or manufactured home in Southern California, one of the first questions you’ll face is: 

“What are the interest rates for a mobile home loan?” 

Many buyers assume mobile home loans work just like traditional mortgages — but they don’t. In fact, financing a mobile home is a completely different process, with different loan types, different qualification rules, and very different interest rate ranges. 

This guide walks you through the basics so you can shop confidently and avoid surprises. 

Mobile Home Loans vs. Traditional Mortgages: What’s the Difference? 

A traditional mortgage applies to real property — land plus the structure. 

Most mobile homes, however: 

• Sit on leased land inside a park 

• Aren’t legally considered “real estate” 

• Are titled like vehicles (through the DMV or HCD in California) 

Because of this, most mobile homes do not qualify for a standard mortgage. 

Instead, buyers typically use a chattel loan, which is designed for homes that don’t include land. 

What Is a Chattel Loan? 

A chattel loan finances the home only — not the land under it. It’s the most common loan type used in California mobile home parks. 

Key features: 

• Faster approval process 

• Less paperwork 

• Designed for homes inside manufactured home communities 

But also: 

• Higher interest rates 

• Shorter loan terms 

• Higher monthly payments compared to a traditional mortgage 

Why? Because lenders treat mobile homes as personal property rather than real estate, which statistically carries more risk. 

Typical Mobile Home Interest Rates (2025) 

Interest rates vary based on the lender, the buyer’s credit score, age of the home, and whether the home is in a park. 

Chattel Loan Rates: 

• 7.99% – 11.99% for buyers with good to excellent credit 

• 12.99% – 15.99% for mid-range credit 

• 16%+ for poor credit or older homes 

What Determines Your Mobile Home Loan Rate? 

Lenders look at several factors: 

1. Credit Score — Higher score = lower rate. 

2. Age of the Home — Newer homes get better terms. 

3. Condition of the Home — Homes needing repairs may not qualify. 

4. Whether the Home Is in a Park — Park homes usually require a chattel loan. 

5. Down Payment Amount — 10–20% down can reduce your rate. 

Common Loan Terms for Mobile Homes in SoCal 

Most buyers choose: 

• 20-year loans 

• 15-year loans 

Conclusion

Buying a mobile home in Southern California is one of the fastest ways to get into affordable homeownership, and understanding interest rates helps you make smarter decisions. 

If you're comparing lenders or want help understanding your options, Galaxy Homes is here to help.  Call us today at 1-833-459-9467 or email us at info@galaxyhomes.net