Mobile Home Commercial Loans for Mobile Home Parks
Mobile Home Financing:
Mobile Home Commercial Loan is designed for mobile home parks where the majority of the mobile homes or trailers are “Park owned.” The vast majority of the mobile homes must be “Owner Occupied.” It can be challenging to finance parks with a large percentage of RV’s creative lenders who can structure a loan for that mobile home park you want to buy, rehabilitate or refinance. Many conventional banks have been turning down borrowers looking for mobile home park financing.
Essential Mobile Home Park Financing Highlights:
– Keep your payments down with long term mobile home park financing
– Very competitive interest rates.
– Financing can include a 2nd position seller take-back.
– Extremely competitive interest rate for mobile home park financing
– Term: From pure variable to 20 and 30 year fixed.
– Many adjustable rate programs are available.
– Amortization up to 30 years.
– Up to 20% second lien position seller take back allowed in most cases.
– Most loans are acceptable with lender approval.
– Prepayment penalty varies with individual loan.
Small Loan Programs for mobile home park s with buyer or owner sub-par credit rating. Loan amount from up to $800,000. Low credit scores are often eligible. Most banks and other conventional lending sources all over the country often turn down small amount, sub-par credit loan requests for mobile home park financing Many times the property is sound and well-occupied. Conventional lenders just don’t want to handle a small loan.
Here is the check list for Mobile Home Parks Commercial Loan:
1. Current Rent Roll including:
– Square Footage of mobile home
– Lease abstract details such as: Escalations, commencement & expirations, add-ons, description of tenant, Description of any added rent that the tenant is responsible for (In addition three years of historical data would be ideal)
2. Complete Income/Expense Statements on the property including:
– Annual property taxes
– Leasing commissions, tenant improvements
3. Complete detailed physical description of the property, along with the site map, floor plan, and property survey.
4. If acquisition, provide the copy of fully executed contract of sale.(indicates the date).
5. If refi, price originally paid for property, date of purchase and summery of current financing.
6. Floor plan and photos of the property.
7. Outlined recap of current financing (refinance only) including:
– Current lender
– Current principal balance
– Current interest rate
– Current monthly payment
– Due date
– Prepayment penalty information
8. Personal info and resumes info on the management and the owner.
9. Current personal financial statements (last three years)
10. Current Business financial statements (last three years).
11. Personal Tax Returns (last two years).
12. Business Tax Return (last two years).
13. Authorization to run credit report.