Financing for Mobile Home Park

4 Replies

If it's under $750,000 loan size then you have two shots:

1) seller financing

2) local bank financing

If it's $750,000 or greater in debt then I would call Security Mortgage Group (loan brokers) and let them find it for you. They have access to two additional loan products: 1) conduit and 2) agency.

Very few mobile home parks can't be financed if you are diligent.

I may be able to help, Jake.  I would need some more specifics.  The most important being population.  If it's in a rural area and not close to any larger cities, it will be difficult for me to get done.

@Jake August just with a bit of quick back of the napkin math, it looks like the park you are referring to has an average rent per pad of $600 per month. To any experienced mobile home park owner that means the park is made up of all park owned homes. You will want to keep in mind that with a park like that, any lender who would normally be interested will be cautious at best due to the risk associated with the POHs. Also, you will need to know they will not be likely to give any credit for the rental income, rather just the lot rental income.

With that said, your best bet is seller financing, or a local/regional bank who already finances parks and are familiar with the market where the park is.