Next Step

Buying land for a factory-built home is an exciting step toward homeownership. However, before purchasing property, it’s important to understand zoning. Zoning laws determine how land can be used and what types of homes can be placed on a property. These rules are set by local governments and can vary widely between cities, counties, and neighborhoods.

Zoning districts typically fall into several categories, including residential, commercial, agricultural, and mixed-use. Within residential zones, additional rules may affect whether factory-built homes are allowed and how they must be installed.

Thinking about buying a factory-built home? Make sure you understand your financing options. There are two main loan types:
✔ Mortgage (real property loan)
✔ Chattel (personal property loan)

Mortgage loans often mean:
• Lower interest rates
• Longer repayment terms
• Access to FHA, VA, USDA & other programs
• Potential eligibility for down payment assistance

Chattel loans may:
• Close faster
• Work well in land-lease communities
• Have fewer qualification requirements

But they can also come with higher interest rates and shorter terms. The right choice depends on your land situation, foundation type, and long-term goals.