How to Finance a Land-Lease Home

Patrick Crocetta
Saddlebrook Farms Homes


Deciding to buy a home can be one of the biggest and most impactful decisions you can make. At Hometown America, we understand how important buying a home is and work hard to ensure our customers have confidence knowing they will be taken care of throughout the process. The step we receive the most questions about is financing, and while we know this is sometimes perceived as a frustrating process, Hometown America often helps buyers with obtaining lending for their new homes. Whether you are considering one of our communities in California, New England, the Mid-Atlantic, or Florida, our teams will help ensure this step is handled correctly and efficiently. 

Why Land Lease 

When you buy a manufactured home in a Hometown America community, you are buying your new home, without investing in the land on which it sits. This opportunity enables you to invest in your home purchase at a cost that is significantly less than if you also bought the land.  

Each home buyer receives a lease agreement outlining the details associated with usage of the land on which the home sits. This land lease agreement is a key factor when borrowing money to buy a home because some banks will loan money only when you buy the home and the land. Knowing which banks loan money for a home purchase that does not include land can save time and prevent potential frustration, making the home buying experience more enjoyable. 

Home Loan Types | Mortgage vs Personal Property Loan  

Understanding the differences in loan types related to home purchases with and without land is helpful during the financing process. There are two loan types: a mortgage and a personal property loan.  

  • A mortgage assumes you are borrowing money to buy both the home and the land.  
  • A personal property home loan assumes you are borrowing money to buy a home and at the same time leasing the land on which the home sits through a land-lease agreement.   

Personal Property Loan | What to Know 

When securing a personal property home loan, the interest rate may be a little higher since the loan does not have the same land collateral that a mortgage holds. However, because the land is not part of the purchase, the amount borrowed, and the associated deposit needed are often significantly lower for the home buyer. This provides an advantage to buying and financing a manufactured home in a land-lease community, often making homeownership more affordable

How We Help 

Knowing the steps required in a home purchase saves time, effort, and money. Our Hometown America sales representatives understand the process and are passionate about making your home buying experience fun, easy, and seamless. We are happy to provide you with a list of banks that will make your lending application process simple and stress free. 

Let us help you buy the home of your dreams!

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