Mobile Home Park Loans:

Loan programs are available through our established network of banks, financial institutions and private lenders. We have access to capital sources nationwide that specialize in mobile home park financing.

General Financing Guidelines:

• Loan-to-Value ranges from 60–80%. Typically 25–35% down payment or owner equity is required.
• Seller carry financing may be allowed with a minimum buyer contribution of 50% of the down payment.
• Property condition - looks are very important! The best pricing and highest leverage is reserved for parks that are well maintained, paved, lighted, with amenities like laundry and clubhouse, and have a mix of double and single-wides with some newer model homes.
• Occupancy is the key indicator of demand for the park. Most lenders target 85% but exceptions are made based on high cash flow relative to the debt and ability to increase occupancy.
• Park ownership of mobile homes and RVs space rentals should be kept to a minimum. Usually 10-15% is within guidelines, and exceptions are made on a case-by-case basis.
• Net Operating Income should exceed mortgage payments by 1.25X.
• Ownership - lenders consider borrower’s net worth, liquidity, experience and location and credit scores.
• Rural Parks - local population density minimums are often required (e.g. near a town of 25,000 and within 25 miles of 100,000). Parks located in rural areas can be harder to finance.
• Loan size minimums are usually $500,000 for banks and $1-2Mil+ for institutional lenders.

Sample Loan Terms and Rates:

• Banks – 5-10 Year Fixed , 5.50-6.50% rate, 5 Year Fixed becomes adjustable or rolls over for another 5 years, usually 10 year term (balloons after 10 years), amortization period 20-30 years.
• Institutional – 5, 10, 15 or 30 Year Fixed, 5-6.50% rate, may balloon, 25-30 year amortization.
• Private Money Loans – 2 year term (balloon), 10-12% rate, interest-only payments, 50-65% LTVs.

Standard Documentation Required for Initial Review:

1. Pictures, pictures, pictures
2. Current Rent Roll (should show unit #, tenant name, pad rent and any additional park owned home rent)
3. Operating History: year-to-date and two full years’ operating statements
4. Borrower BIO and Personal Financial Statement