Personal Property vs. Real Property: What It Means for Manufactured Homes

When you’re buying a manufactured home, you’ll hear terms like personal property and real property. At first, it sounds like legal jargon, but it’s actually a big deal when it comes to financing, taxes, and how much equity you can build in your home.

Let’s break it down 👇

What Is Personal Property?

If your manufactured home is considered personal property, it’s treated more like a vehicle than a traditional house. Here’s what that means:

• Title – You get a title through the Department of Motor Vehicles (DMV) or similar, just like you would with a car.

• Land – The home sits on leased land (like in a mobile home park) or land you don’t own.

• Financing – You’ll usually use a chattel loan, which often comes with higher interest rates and shorter terms.

• Taxes – Instead of property taxes, you’ll typically pay annual personal property taxes.

  
  

Personal property can make sense if you’re placing your home in a community where you don’t own the land, plan on selling the home eventually but keeping the land, or if you just would rather pay for a decal every year than property taxes.

What Is Real Property?

If your manufactured home is considered real property, it’s treated just like a site-built house. Here’s what changes:

• Title & Deed – Your home is legally attached to the land, and it all transfers together with a deed.

• Land – You own the land underneath the home.

• Financing – You can qualify for a traditional mortgage with lower interest rates and longer repayment terms.

• Taxes – You’ll pay standard real estate property taxes.

• Equity – Because your home and land are tied together, you can build equity over time just like a stick-built homeowner.

  
  

This option often adds long-term value and opens the door for better financing. It's a good option if you are placing this home on a piece of land and will eventually sell the land and home as one or if you are planning on staying in this home forever.

Keep in mind, property taxes will be based off the home and the land so they will be more, and check about insurance because some insurances will still consider it a "manufactured home" and not be able to do insurance on it.

How Do You Convert a Manufactured Home from Personal Property to Real Property?

In most states, you’ll need to:

1. Place the home on a permanent foundation. (Think concrete footers, block skirting, and proper anchoring)

2. Own the land where it’s installed.

3. Retire the title with the DMV so it becomes part of the deed to your land.

   
   

The process and requirements vary by state, so always check local laws (and we can help guide you through it).

Why It Matters for Buyers?

Understanding this difference helps you make the best decision for your budget and long-term goals:

• Looking for a lower upfront cost or moving into a land-lease community or you plan on selling the home later on? → Personal property may be right for you.

• Want to build equity and have more financing options? → Real property is the way to go.

Final Thoughts

At Oxford Housing, we walk families through these choices every day. Whether you’re planning to keep your home as personal property or convert it to real property, we’ll help you understand your options and guide you through the process.

👉 Ready to explore your homebuying options? Come tour our homes in Oxford, AL or visit us online to learn more.

Also check out our TikTok below that explain this process and see what others are saying!