Good day BP,
I have a 41 space mobile home park under contract located in Indiana. I am having trouble with lenders allowing the seller to hold a second mortgage. The park is 94 percent occupied. Does anyone know of a lender that will allow a seller second? If so please pass their information on. I will greatly be thankful.
@Donald Torrence is the MHP near where you live? I have had good success with portfolio lenders allowing seconds under the following conditions:
-I'm talking to a commercial lender at a small bank or credit union in my area
-I'm a local borrower (I live within the same state as the bank and property)
-Their LTV is still good (75% or less)
-The debt service coverage ratio is still strong, even considering the second mortgage payment
I would recommend talking to a small local bank that is near the MHP. In my experience lenders are usually more comfortable with collateral that they know.
I need to know the numbers on this so I can help.
As long as the seller second is around that 5% mark and the lender is lending at 75% LTV then yes but your all in liens should not exceed 80% LTV
That is at least based on my experience maybe someone will chime in with a different perspective and info
If you can't get it financed-let me know as you could always flip it to me.