Individual vs commercial loan

2 Replies

When trying to purchase your first MHP which is a better way to get funding? The few commercial lenders I have talked to wanted to work with established businesses. So is it safe to say that I should get pre- approved individually seeing that my LLC won't have the history of financial statements most commercial lenders would require.

All advice is welcome. Please any experienced investors in mhp help me.

@Jordyn Rodriguez   I was just posting about this in a different thread.  Most of my loans are commercial and it's best to work with local banks in your area and going in to meet in person.  Yes, it does help to have experience, so can always partner with someone. 

They require a personal guarantee so will look to your personal financials, regardless of the LLC or not. So to me the paperwork process was nearly the same as a conventional loan (except they do look at rent rolls, detailed rehab list, etc), but they had more flexibility and could approve it much quicker. Downside of commercial is that the rate will not be fixed for the life of the loan, and shorter terms: most of mine are 15 or 20 year. Most don't report to your personal credit.

Hope that helps,

- Tom