BRRRing a Mobile Home?

12 Replies

I'm finding a lot of deals on mobile homes in my area, Spartanburg, SC, but I can't find a local bank who will offer refinancing to an investor on mobile homes. My current goal is to use my HELOC to pay cash and fix one up and then use the BRRRR strategy and refi so I can get my HELOC back. Is there anywhere else I can look to try to refi once I fix it up and rent it out?

You will be hard pressed to find a lender for used mobile homes. This is why you can find deals. Cash or owner financing is how the used mobile market moves. Read "Deals on Wheels" or Tin Can Alley" by Lonnie Scruggs 

It will be tough to finance these type of properties as buy and hold, many investors just have them paid off due to the lower price point or opt to own the parks and not the mobile homes themselves.

@JD Morris Try 21st Mortgage or a local credit union. Otherwise, you can always try private lenders (usually best with those experienced and know the asset class). Good luck! 

Most banks have a bad vibe towards mobile homes in general. If they finance them they are just as strict if not more than FHA financing. It must be no older than x years old, must not be a fixer upper, etc. Mobile homes are a very difficult thing to finance with typical banking financing. Keep in mind, mobile homes in parks are typically not going to appreciate over time. In the 2-3 years you may live there doing the BRRRR strategy you may not get the sale price you're hoping for BUT you could get some great return on the rents if you bought right initially.

Originally posted by @Rachel H.:

@JD Morris Try 21st Mortgage or a local credit union. Otherwise, you can always try private lenders (usually best with those experienced and know the asset class). Good luck! 

Thank you!  21st Mortgage seems like they might be the place to go.  They at least have given me hope initially.  

For the record, these homes I'm finding are not in parks.  They're just on their own piece of land.  Thanks everyone for your replies.  I'm not sure why I didn't get notified... I'll adjust my settings so I can reply faster.

@JD Morris - Did you find a lender that would loan on a mobile home with land investment property?

I am also in the process of doing 2 BRRRR deals with mobile homes. They were some of our best deals last year.

@JD Morris - I found three lenders that will loan on manufactured homes with land in Colorado. Also, I know of a few in North Carolina who will too. I don't know any (right now) in SC though. I use my HELOC on my primary residence and my other manufactured homes with land to buy other manufactured homes with and without land for cash. Thus, I think your strategy is sound. You just have to do the legwork and call all the community and credit unions in your area. You'll find one eventually who will do it as an investment property. In order to give you an idea of the terms you may find, here's one of the lenders offer to me.

7 year loan maturity

25 year amortization

5% interest rate

1% origination fee

1.2 Debt Coverage Ratio


3 month seasoning period

you might also check with Vanderbilt Mortgage

JD I would be interested to know how you are finding your mobile homes.  I'm having a hard time finding single wides for sale.

Last year I had a few that I have been able to tie into a commercial loan, but that's only because it was on the same parcel of land as a brick house. 

In April, I picked up a double wide on its own land that is cash flowing great.  Unfortunately I cant find anywhere to refi it to pull my cash back out. I have tried just about every bank/credit union in the area, and no go. There is a marker in SC for this type of lending for sure. Though they are hard/impossible to finance and refi, they are the best cash producing housing in this area by far. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here