Rental Property Investor · NJ and PA · Member since 2019 · 206 posts · 105 votes
Anybody know of a bank that will do a 1st postion HELOC on a rental property that is a manufactured home in Florida?
I acquired the property subject-to, and the existing mortgage is with Ameris Bank, and they would do it, but they say I'd need to go to the local branch -- and I don't live in one of their states.
I'm almost done with rehab, so I'm on the hunt for a bank that can provide this LOC.
(Why a HELOC instead of a mortgage? Because I don't need the cash back. I only need to pay off the small existing subject-to loan, and beyond that, I want cash flow and *access* to cash, not actual cash in the bank that I have to pay interest on while I'm not using it.)
You have a very tough and sepcific loan requirement. There are a few number of lenders who will lend on MH in general unless it was built within (20 years) attached to a permanent foundation with hurricane tie downs and concrete pillars and skirtings on owned land not on or in a rental lot. The two hard things you face which is a (No Go) for most lenders in a (NOO non-owner occupancy, and HELOC versus cash out mortgage) the HELOC is an open end line of credit and the few lenders that do offer those on Manufactured require that the HELOC must be used to pay off a 1st Mortgage and or any liens.
I have seen investors have to go an actually get a "Title loan" because its still considered a DMV type issue where it was once delived on axle. Unless it was an actual "Modular" stick built where it was prefabbed and built on site. My advice is to try for the cash or refinance not the HELOC you will have a better chance.
You have a very tough and sepcific loan requirement. There are a few number of lenders who will lend on MH in general unless it was built within (20 years) attached to a permanent foundation with hurricane tie downs and concrete pillars and skirtings on owned land not on or in a rental lot. The two hard things you face which is a (No Go) for most lenders in a (NOO non-owner occupancy, and HELOC versus cash out mortgage) the HELOC is an open end line of credit and the few lenders that do offer those on Manufactured require that the HELOC must be used to pay off a 1st Mortgage and or any liens.
I have seen investors have to go an actually get a "Title loan" because its still considered a DMV type issue where it was once delived on axle. Unless it was an actual "Modular" stick built where it was prefabbed and built on site. My advice is to try for the cash or refinance not the HELOC you will have a better chance.
Thanks. I do intend to pay off the (small) mortgage that's in place now. There won't be any other liens. If necessary, I'd consider a mortgage instead of a HELOC, but that would be an inferior option.
You could go with a 30YR Fixed Mtg with no prepay. The loan size can dictate rate meaning typically under $100K rates are not great but still reasonable.