Free Mobile Home Promissory Note Template

A promissory note for an owner-financed manufactured or mobile home sale. Sets out the principal, rate, payment schedule, late fees, and default terms. Free fillable PDF.

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• Included — Lender/seller and borrower/buyer details, including where payments are sent
• Included — Full home description used as collateral — serial, HUD label, title number
• Included — Principal financed, interest rate, term, and payment amount and frequency
• Included — First payment date, maturity date, and optional balloon amount
• Included — Late fee amount, grace period, and cure period after written notice
• Included — Prepayment, security, default, and governing-law clauses with signature blocks

What a promissory note does in an owner-financed sale

When a seller carries the financing instead of sending the buyer to a bank, the promissory note is the document that creates the debt. It states how much is owed, at what interest rate, on what schedule, and what happens if the buyer stops paying. It is the instrument the seller would rely on to enforce collection, so vague or missing terms are expensive later.

The note and the security are two different things

The note is the promise to pay. Securing that promise against the home — so the seller has recourse to the collateral on default — is handled through your state's titling process, usually by recording a lien on the title. This template identifies the home as collateral and restricts transfer without consent, but recording the lien is a separate step you should confirm with your titling agency or attorney.

Terms worth setting deliberately

The fields people most often leave loose are the late fee and grace period, the cure period after written notice of default, and whether prepayment is allowed without penalty. Decide each of these before you sign rather than after a payment is missed. Run the numbers first with the free payment calculator so the payment amount and maturity date on the note actually match the amortization.

Frequently asked questions

What is the difference between a promissory note and a rent-to-own agreement?

Under a promissory note the buyer typically takes title at closing and the seller holds a lien as security. Under rent-to-own the seller keeps title until the buyer completes all payments. That distinction changes who is the legal owner during the term, how a default is handled, and which consumer-protection rules may apply, so choose deliberately rather than by habit.

What interest rate can I charge on owner financing?

Rates on seller-carried notes vary widely, but they are not unlimited. States set usury caps, and federal rules such as the SAFE Act and Dodd-Frank can apply to seller financing of dwellings, including some manufactured home sales. Confirm the limits and licensing requirements in your state with an attorney before setting a rate.

Do I need to record a lien on the title?

If you want recourse to the home itself when a buyer defaults, yes — an unsecured note leaves you chasing the person rather than the collateral. The process is state-specific and usually handled through the same agency that issues manufactured home titles. Do it at closing, not later.

Can the buyer pay the note off early?

This template allows prepayment without penalty by default and includes a field to write different terms if you intend to charge one. Because interest accrues on the outstanding balance, early payoff simply reduces the total interest collected. Our free payoff calculator will show the remaining balance at any point in the schedule.

What happens if the buyer stops paying?

The note provides that after written notice and the stated cure period, the lender may declare the full balance due and pursue available remedies. What those remedies actually are — repossession, foreclosure, or another process — is governed by state law and by whether the lien was properly recorded. Get legal advice before acting on a default.

Related: All Free Templates · Mobile Home Bill of Sale · Mobile Home Rent-to-Own Agreement · Mobile Home Purchase Agreement · Mobile Home Lot Lease Agreement · Mobile Home Title Transfer Checklist · Payment Calculator