Leased Land Guide
Buying a manufactured home in a park (leased land) is common — and it changes how financing works.
What is “leased land”?
Leased land usually means you own the home, but you rent the land it sits on (often in a mobile home park). You’ll typically pay a monthly lot rent in addition to your loan payment.
Why traditional mortgages often don’t work
A standard mortgage is usually secured by real estate (the land + the home). If you don’t own the land, many lenders can’t structure it as a typical mortgage — though rules vary by program and state.
Chattel loans
A chattel loan is often used when the home is treated more like personal property than real estate. It can be common for leased-land situations. Terms, pricing, and requirements vary by lender and credit profile.
What to plan for
Leased land can be a great fit for many buyers. The key is planning for the full picture and asking the right questions early.
- Lot rent & fees: confirm the current amount, what’s included, and how increases are handled.
- Park approvals: many parks have application, age, and rules that can affect the timeline.
- Home documentation: year, HUD tags/serial, and title status can matter to lenders.
- Insurance & utilities: ask what’s required and what you’ll pay separately.
Exact requirements vary by lender, state, and the specific park.
Not sure which option applies?
We can connect you with a specialist who understands leased land and manufactured home financing in your state.
Leased land FAQ
Quick answers to common questions people search for. These are educational and can vary by lender, park, and state.
Is a manufactured home on leased land a good investment?
It depends on your goals, budget, and the specific park. Leased land can offer a lower purchase price than land-owned property, but factors like lot rent increases, park rules, home age/condition, and resale demand can impact long-term value. Consider it a lifestyle/affordability decision first, and ask a licensed professional to review your full costs.
Can you put a mobile home on leased land?
Often yes — many buyers place or purchase homes in mobile home parks where the land is leased. The key is that the park must approve the home and the buyer, and financing options can differ from land-owned scenarios. Requirements vary by park, lender, and state.
How much is a land lease for a mobile home?
Lot rent varies widely by location and park. It can include (or exclude) utilities, trash, water/sewer, and community fees. Always confirm the current lot rent, what’s included, and how increases are handled in the lease before buying.
Can I get a mortgage on leased land?
Usually not a traditional mortgage, because many mortgage programs require the land and home to be secured as real estate. In leased-land situations, chattel-style financing is often more common. Some exceptions may exist depending on the property and lender, but it varies by lender and state.