January 30, 2009

Many investors in mobile home parks, whether they are looking to refinance their existing properties, purchase an additional park, or buy one for the first time are under the impression that financing for parks is not available. Although the shake-up in the credit markets has eliminated many of the lenders that were actively involved in financing mobile home parks, there are a number that are eager to consider deals that fit their profile.

Understanding where your park fits is the difficulty. Each lender has their own set of criteria as to what they will or will not loan on. Some local banks may not want to deal with out-of-town borrowers and this can be frustrating for an investor buying out of his or her area. Many national lenders are focused on financing parks through Fannie Mae. This is a great financing program if the park meets Fannie Mae's fairly stringent criteria, but many parks do not fall into this category. There are several options outside of local banks and Fannie Mae as well.

Below is a brief description of several financing options available. Each lender will have their own set of additional criteria, but this will provide a starting point to determine whether your park "fits" into some of the lending available at this time.

Small Balance Min. Loan Amount: $100,000 Maximum Loan Amount: $400,000 Max. LTV: 60% Max: CLTV: 75% Term: 5 years Amortization: 25 years Interest Rate: Prime + 5.50% Floating (fixed rates available) Territory: Nationwide Excluding: AL,AK,HI,MI,NV,OH,WV,VT

Small Balance Min. Loan Amount: $350,000 Maximum Loan Amount: $1,500,000 Max. LTV: 75% Max. CLTV: 75% Term: 5 years Amortization: 20 years Interest Rate: Prime + 2% (Floor rate of 7%) Floating Territory: GA,KY,LA,MS,NC,OH,SC,TN,TX,VA,WV Mid-Balance Min Loan Amount: $1,000,000 Max. Loan Amount: $5,000,000 Max. LTV: 75% Max. CLTV: 85% Term: 5 years Amortization: 30 years Interest Rate: 7.25% Territory: Nationwide Mid-Balance Min Loan Amount: $1,000,000 Max. Loan Amount: $5,000,000 Max. LTV: 75% Max. CLTV: 75% Term: 5 years Amortization: 20 years Interest Rate: Prime + 2% (Floor Rate of 7.00%) Large Balance Min. Loan Amount: $1,000,000 Max. Loan Amount: $50,000,000 Max. LTV: 80% Max. CLTV: 80% Term: 10 years Amortization: 30 years Interest Rate: 6.25% Territory: Nationwide Bridge Loan Min. Loan Amount: $1,500,000 Max. Loan Amount: $25,000,000 Max. LTV: 70% Max. CLTV: 70% Term: 1 - 3 years Amortization: Interest-only or 20 years Interest Rate: Prime + 2% (Floor rate of 7.00%) Territory: Nationwide Mobile Home Line of Credit Min. Loan Amount: $500,000 Max. Loan Amount: $6,000,000 Max. LTV: 75% Max. CLTV: 75% Term: 5 years Amortization: 10 years Interest Rate: Prime + 2.50% (Floor rate of 7.50%) Territory: Nationwide  

Steve Murden, President Star Capital Corp 14 E. Campbell Avenue, Ste. 240 Roanoke, VA  24011 (540) 342-6520 (703) 991-0072  fax stevemortgage@aol.com www.starcapitalcorporation.com