Mobile Home Park Financing

17 Replies

Does anyone know or recommend where one can get financing on mobile home parks?

Banks seemed scared to death to do them. 



@Jeff Plair

Do you work for them? One of the properties I am looking at is in GA. 



no I don't work for them, I might be using them my self to invest in a mobile home!! 

Find a mobile home park that offers owner financing or land contract. I notice 25% of them offer that. You will normally get great terms that can be negotiated and closing costs at a minimum vs bank financing. 

21st Mortgage lends on mobile homes, I don't believe they have a park financing arm. 

Financing mobile home parks can be challenging depending on the size of the park, the occupancy and the number of POH (park owned homes). 

There are couple financing options:

  • Regional Banks
  • National Banks
  • CMBS (Commercial Mortgage Backed Securities - aka Conduit Loans)
  • Life Companies 

A park below say $1.5-$2.0 million in value will likely need to be financed by a regional bank. National banks typically want to finance large commercial deals. CMBS lenders can finance smaller deals as they are going to package the loans and sell them to Wall Street, but they generally don't like to go under say $1.5mm in debt proceeds. Also CMBS lenders tend to like deals with higher occupancy (say 80%+) with not too many park owned homes.

There are a couple Life Companies that love mobile home parks but they are really relationship driven and they are going to want larger, stabilized deals as well. 

Therefore, the majority of mobile home park deals will be financed by regional banks. You're best bet here is cold calling every regional bank within say 100 mile radius of the mobile home park you're looking to finance. Not a fun exercise, but this is the only way to ensure you've explored all financing options on a smaller park. 

Alternatively, you can hire a mortgage broker that specializes in MHPs. However, as they are typically paid 1% of the loan amount, they too prefer larger parks and may or may not spend much time working on smaller deals. If you're park is located in a small market, they might be able to help if they happen to know small banks that are willing to lend there, but they are unlikely to call every regional bank. If the park is located in a larger metro area, they probably have connections with several banks and will save you a ton of time (and perhaps secure you better terms).

If you pursue all these avenues and still strike out, then you have a compelling reason to go back to the seller and request he/she offer seller financing. If they won't (or cannot) then move on to the next deal.  

I don't want to self promote but I work with a lot of buyers and sellers looking to finance mobile homes. Email me at [email protected]

@Andrew Warner

Can you do financing in all states? I would be looking primarily at Kentucky, Tennessee, Georgia and Alabama. 

@Hai Loc

Thanks! That is a great idea. I have been working some with owner financing and you are right about 25% or so offer some form of seller financing. 

How/who manages your mobile home parks? I noticed you have two in different states. 

What kind of success are you having? 



@Jordan Vires  I am a broker and don't do financing but since I specialize in MHPs I do know  people who I can refer you to that may be able to help. 

George Allen publishes a list each year of the available larger lenders that provide funds for purchasing a community. GFA Management in Indianapolis, IN. This is a freebee for subscribers to The Allen Letter which many community owners consider an absolute necessity. I assume it is also available to those who are not subscribers as well.

I have been subscribed to it since it's inception along with the more in-depth Allen Confidential that most larger operators also subscribe to.

If you go to his annual Roundtable (this year in San Diego - he moves them around) in September every major lender and every major broker in the country will be there to meet with in person. There will also be many experts there as speakers on a variety of topics of interest to community owners, as well as many community owners to network with over three days and evenings.

Didn't know about them, thanks for the info.  I'll check them out and let them know that @Kevin Schulte referred me.

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If you are looking for financing, I could help you out. Shoot me an email or message. 

Best place to find financing for a park is the bank that is already financing it. They know the property and are comfortable with it.

That's how I've financed nearly every park I've purchased...

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