Mobile Home Park Financing Questions & Answers
Anita Huedepohl, Liberty Funding
How much down payment is required?
Lenders will provide up to 85% LTV(loan to value) based
upon the park's performance and debt service ratios.
A lender will not allow
the seller financing to be used as 'cash down', however,
you can take out an equity line(HELOC) on your own home
and use the proceeds as down payment since it is secured
by your primary residence.
ability to purchase a mobile home park does not rely on
your personal income. The park must 'qualify' based on
its' income and if it is not sufficient, the lender will
then look at other assets and income of the borrower to
further support the payment.
If you do not have
sufficient funds to purchase the park you have in mind,
you may want to consider purchasing a smaller park to
get started or partner with someone else to complete
Lenders can go down to a
600 credit score, depending on the overall strength of
the borrower's application including assets and
are ready to retire and welcome creative ways to sell
the park, especially if it has been on the market for a
while. We can refinance the park for the owner providing
them with cash out to give them a year's incentive. You
can partner with them to run the park, gradually
allowing them to retire while you are saving enough
money to put as a downpayment and within a year you can
assume their loan.
Interest rates vary from park to park depending on debt
service ratios and rent roll occupancy, not to mention
the borrower's credit scores.
Yes...we offer up to 30
year amortizations with no balloon notes. A balloon note
means that at the end of the given time you must
refinance the note, irregardless of the amortization.
Oftentimes clients see really low 'teaser'
Liberty Funding has financing options that allow you to
'flip' the park and
Can I use the value of
the park's appraisal as downpayment since the owner is
Typically lenders base
their decision to lend upon the purchase price, not an
appraisal value and a downpayment is a percentage of
that purchase price. There are some lenders with higher
interest rates that will offer some 'out of the box'
ideas and it is best to check with our office as these
are on a case by case basis.
Yes, we can.
The appraisal must be
current (30 days) to be considered and even then it must
be from an appraiser on the lender's approved list.
Values on the appraisal are based on comparables(comps)
and should reflect current market values in order to be