What is a chattel mortgage typically applied to?

A chattel mortgage is a type of loan typically secured by personal property instead of real estate. This form of financing is often used for movable properties, such as vehicles, equipment, or furniture, that can be taken away or relocated. In a chattel mortgage, the borrower retains possession of the property while the lender holds the title until the loan is paid off. This arrangement allows individuals and businesses to secure financing for personal property without needing to place real estate as collateral.

In contrast, real estate is associated with directly secured loans such as traditional mortgages, and construction loans are specific to financing the building of structures. Commercial property typically involves different financing terms as well, focusing on land and buildings intended for business purposes. Therefore, understanding that a chattel mortgage specifically pertains to personal property clarifies why this answer is correct.