Video Overview
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The majority of manufactured homes are located in parks or land-lease communities — also called mobile home parks. If you're considering buying in one, it's important to understand exactly what you're getting into before you sign anything. The financing, the ownership structure, and the ongoing costs are all different from buying on private land.

You own the home. You lease the land.

In a land-lease community, you purchase and own the manufactured home itself — but the land underneath it belongs to the park. You pay monthly lot rent to the park for the right to place your home there. This distinction matters for several reasons:

1
Your loan is a chattel loan
The home is financed as personal property, not real estate. This typically means higher interest rates and stricter underwriting than a traditional mortgage.
2
Your lot rent is factored into your debt-to-income ratio
When you apply for financing, lot rent isn't just a monthly expense — it directly affects your qualification and how much you can borrow.
3
Lot rent can increase over time
Review the lease agreement carefully before committing — understand how often rent can increase and by how much.

Park approval — a step most buyers don't expect

In all communities, the park must approve you as a resident before you can move in. This is separate from your lender's approval. Parks typically review your credit, rental history, and background. Getting lender approval does not guarantee park approval — and failing park approval after loan approval is a real scenario that can derail a closing.

⚠️ Start the park application process early. Don't wait until after you're approved by the lender. Run both processes in parallel to avoid delays.

The full picture of monthly costs

When budgeting for a home in a land-lease community, your monthly costs include more than just your loan payment:

Typical monthly costs to plan for:

Loan payment (principal + interest)
+ Lot rent
+ Homeowner's insurance (HOI)
+ Utilities (often not included in lot rent)
+ Any community HOA or maintenance fees

All of the above except utilities are factored into your DTI by chattel lenders.
✓ Have questions about a specific community? Call us — we've worked with buyers in parks across the region and can help you think through the numbers before you apply.

Ready to run the numbers on your situation?

We'll help you understand exactly what you'd qualify for — including factoring in your expected lot rent.

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