Financing For New Manufactured Homes Used as Rentals?

Financing For New Manufactured Homes Used as Rentals?

Rental Property Investor · Los Angeles · Member since 2018 · 25 posts · 11 votes

I am starting to explore a new business plan in CA that would essentially include placing newly constructed manufactured homes on lots that I own for rental in the Section 8 program.  My question right now is, is anyone aware of a financing program that's available for the acquisition of the manufactured homes?  I've made some calls to chattel mortgage lenders, but struck out so far on the investor use.

Any more creative ways of financing the investment besides a long-term chattel mortgage (e.g. perhaps a lender willing to lend against the homes alone or the homes and the land once the project is stabilized?)?  Or suggestions on a private lender willing to do something like this with a single digit interest rate and a medium- long term (i.e. I know I may be able to use hard money up front, but I will still need to take them out if this is going to be viable)?  Any advice would be appreciated, thanks!  

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  • Lender · Peoria, AZ · Member since 2018 · 77 posts · 25 votes
    6y

    Hey Mike, 

    There are so many loan products available I am sure there would be something that will work. Lenders are getting a little more relaxed about what they can do as the underwriting on mortgages is more sustainable than 2008. The broker I used for my duplex does work in Arizona and California. I would just say the key is to get a great loan officer who is willing to work for you with the lenders to find something that works. I loved my lender so much I just got my loan originators license to actually help people in your situation as well. 

    Good luck

  • Wholesaler, Rehabber and Landlord · San Antonio, TX · Member since 2014 · 2k+ posts · 2k+ votes
    6y

    Hey @Mike Akerly have you called 21st Mortgage?? They are the premier manufactured home loan company. No I do not work for them or get anything from them. If you call some retail outlets, I bet you can find out who they use for financing.

  • Lender · Winlock, WA · Member since 2013 · 1k+ posts · 1k+ votes
    6y

    Sorry to be the bearer of bad news, but there is no financing available in the residential industry for Non-Owner Occupied Mfg. Homes. I have looked high and low for this, its not available. The only thing I can think you can do is to inquire about commercial loans with local banks and credit unions?

    Good luck.

  • Rental Property Investor · Los Angeles · Member since 2018 · 25 posts · 11 votes
    6y

    Thanks @Kevin Romines.  Yep, I'm open to all loan types for sure.  Starting to think hard money might be the best bet for the acquisition and site prep, but still lots more research to do before I settle on that.  I'll definitely sit down with a few local credit unions/banks before deciding.  I appreciate the info!

  • Rental Property Investor · Los Angeles · Member since 2018 · 25 posts · 11 votes
    6y

    @ Rick Pozos - I will check them out!  Thank you . . .

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