FHA Loan Hack for small mobile home park...??? What say you!

1 Reply

Hey fam!

I've earned the nickname MacGyver since childhood because I am always looking for, finding, and creating loopholes and alternate ways to accomplish the same goals others take the traditional paths to accomplish. With that.... here is my question. I want to ask it here prior to asking my lender. 

Can an FHA loan be used to purchase a small mobile home park that includes a single family home on site and up to 10 park owned mobile homes (personal property) where the owner/operator/manager would live on site in the residential home thus meeting FHA residency requirements?

NOTE:

1) Yes. I am aware this "sounds" crazy as a mobile home park is typically considered commercial property- but I am thinking of making a case for residential with the house. I know. I know.

2) Yes. I am aware a lender must be consulted.

3) Yes. I am aware large parks are better than small parks, ,make more money, and support on site management.

4) Yes. I have purchased and gone through multiple in person and "take home" mobile home park purchase trainings.

5) Yes. I have been investing in mobile homes for years. I am now in the market for my first park.

What say you!

I no longer work in the residential lending world but I did for most of my career. It sounds like you are asking about using the FHA single-family loan program to finance the purchase as an owner-occupied home, which is that program's main goal. However, ANY finance program intended for homeownership [FHA, VA, FNMA, FHLMC, USDA] is to finance housing primarily and not other assets - like acreage or business income assets. There are specific covenants in the standard mortgage documents used that will somehow state that the use of the funds is for no purpose other than primary housing. Properties with a business component of any kind - typically called mixed-use - will not qualify for the kind of loan it sounds like you have in mind. The property you describe falls into small-commercial not residential and therefore doesn't qualify for that type of loan.