Mobile Home Financing
4 Replies
April Chim
Investor from Tustin, California
posted over 3 years ago
I was looking at a mobile home park deal and reached out to Chase and CBRE and they loan program and found that they don't fund mobile home park. Would love to learn more about mobile home parks financing is different from multi-unit and how to find the best lending companies for mobile home parks.
Matt Souza
Investor from Ann Arbor, Michigan
replied over 3 years ago
Hi April,
If the park is stabilized (occupancy 70-80%+), most banks will loan money on it. Try a few local banks if the big ones aren’t allowing it, they will often have better terms anyway.
If the park is not stabilized, getting financing is tricky. You will either need the owner to carry the note (owner financing) or you’ll need a REALLY good relationship with a bank. Best of luck!
Conor Freeman
Lender from San Diego, CA
replied over 3 years ago
@April Chim Fannie Mae has a dedicated MHC program you may want to look at. Here are the bullet points from their website https://www.fanniemae.com/content/fact_sheet/manufachousing.pdf PM me if you'd like to learn more, I'm familiar with it.
Ian Tudor
Specialist from Charlotte, NC
replied over 3 years ago
@April Chim - This really depends on your deal size. Large banks aren't interested in mobile home parks. Fannie will consider certain properties but doesn't usually consider smaller ones (less than $1.5M loan size). If over a $1M loan size, you can try a loan broker.
If you think it is a good deal and it is smaller, call 50 local banks within a 50 mile radius of the park. One of my first properties, I had to call 40 banks before I found a good one. Persistence is the name of the game.
Anthony Conway
Investor from Charleston, South Carolina
replied over 3 years ago
If the deal is good enough someone will loan on it. If it is not then... Small local banks, private money.