Lenders on Mobile Home Park Developments

Investor · Huntsville, AL · Member since 2016 · 334 posts · 181 votes

I won an auction with an acre of land. It has a septic and a 2001 mobile home already on it. My plan after closing is to put two more septic tanks and two more mobile homes on there. I know Allies Wholesale does 2026 mobile homes for cheaper than most, but is there a good way to finance all the infrastructure and homes together? What is the best way to do this?

I see the address is eligible on the Rural Development Eligibility Lookup Tool website. Anyone have luck using this program?

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Michael S.

Huntsville, AL · Member since 2018 · 577 posts · 864 votes

2mo

@Samuel Coronado - have you talked to any of the local banks or very small regional banks in Huntsville? Most of them will only lend to local investors but are eager to do so.

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Shuff MauldinPro Member
Investor · MS AL TN, GA · Member since 2019 · 70 posts · 45 votes
2mo
I would get a bank for the land and horizontal costs and then look to get lending on the homes themselves. Lending was better than I expected with 21st MTG.
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Michael S.
Huntsville, AL · Member since 2018 · 577 posts · 864 votes
2mo
@Samuel Coronado - have you talked to any of the local banks or very small regional banks in Huntsville? Most of them will only lend to local investors but are eager to do so.
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- Samuel CoronadoPro Member
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  Investor · Huntsville, AL · Member since 2016 · 334 posts · 181 votes
  1mo
  Quote from @Michael S.:
  
  @Samuel Coronado - have you talked to any of the local banks or very small regional banks in Huntsville? Most of them will only lend to local investors but are eager to do so.
  
  I closed with Eva Bank on the initial land and home package, but for adding in additional, I think I will have to go with chattel lending. I was hoping for a cashout based on the new appraisal once everything was set, but I am having a hard time finding a bank that will do it. Bryant Bank may do it. Waiting on some responses.
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Denise SuppleeBusiness Member
Realtor · Willow Grove, PA · Member since 2017 · 962 posts · 636 votes
2mo
Hey @Samuel Coronado, the land and infrastructure piece and the home piece need to be financed separately in park deals like this. I'd get a local community bank or ag lender for the land, septic, and site work since that's real property, then look at chattel financing for the homes themselves, 21st Mortgage and Vanderbilt both do these but bring their own underwriting quirks. USDA Rural Development can work if the appraiser will support the comps, but ask upfront whether they fund infrastructure and homes on the same note or want them split, most lenders insist on splitting.
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Matthew Irish-JonesBusiness Member
Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
2mo
Who needs a mentor when you have internet access?
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- Jay HinrichsBusiness Member
  Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
  2mo
  Quote from @Matthew Irish-Jones:
  
  Who needs a mentor when you have internet access?
  
  one thing I would do first off is see if you can indeed add two septic systems to the parcel.. could be moot if U cannot add those
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- Samuel CoronadoPro Member
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  Investor · Huntsville, AL · Member since 2016 · 334 posts · 181 votes
  1mo
  Quote from @Jay Hinrichs:
  
  Quote from @Matthew Irish-Jones:
  
  Who needs a mentor when you have internet access?
  
  one thing I would do first off is see if you can indeed add two septic systems to the parcel.. could be moot if U cannot add those
  
  Yes, sir. Multiple septics are cleared to go on there. No special engineering requirements, etc. I always get this checked before closing.
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M Walts
Member since 2025 · 1 post · 0 votes
2mo
What is the zoning like in 'Bama for new MH communities?
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- Samuel CoronadoPro Member
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  Investor · Huntsville, AL · Member since 2016 · 334 posts · 181 votes
  1mo
  Quote from @M Walts:
  
  What is the zoning like in 'Bama for new MH communities?
  
  In my specific area, it is wide open and unrestricted. As you get closer to bigger cities, they get more strict to the point of banning them within the city limits. Some county areas allow MHs to stay grandfathered in, but require newer models within a couple years old to replace any of the older models.
  Overall, very easy going with the local governments. They don't purposely create housing crises from artificially restricting new housing units like some other areas do.
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Gabe OrlanskyPro Member
Lender · Miami, FL · Member since 2026 · 21 posts · 4 votes
2mo
Congrats on winning the auction!

Based on what you described, there are financing options that can potentially cover the land improvements (like septic and utilities) along with the manufactured homes, depending on the project details. The USDA program is great in the right situation, but if these will be rental units, there may be better financing routes.

I'd be happy to take a look at the project and point you in the right direction. Feel free to send me a DM if you'd like to discuss the details.
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