Financing tiny Mobile Home Park
Category: Mobile Homes
4 replies
Original post
I recently acquired a small mobile home park in North Carolina. It's 3 acres with 10 lots. All the units are full right now. I have less than 100k left of owner-financing, but I'd like to get a loan for 300k to pay off the former owner and make some modifications to the park to make it feel like mine (and raise the value). Anyone on this thread know anyone I could talk to?Reply by Robert Turner
I'd be interested in a reply on this. My understanding is that banks do not finance mobile hole parks unless a certain percentage of the units are tenant-owned (only providing lot rent in this case).
Reply by Nathaniel Callahan
Your best bet is going to find a smalll local bank. A lot of major banks like chase, bank of america, etc tend to not loan on a mobile home park.
Reply by Pat O'Shea
I totally agree on the size of the lender. You want small, local lenders as they are much more likely to lend. Credit unions, regional, and community banks are your best bet. Not all do MHP lending, but the ones that do likely will want to help because MHPs have some of the lowest default rates of commercial loans.
Reply by Mose Gebremeskel
Congrats on the acquisition. You may actually have a few decent options depending on current occupancy, lot rents, and how the title/setup is structured. Maybe look into local/community banks in NC that lend on small commercial/mobile home parks, DSCR lenders that do commercial portfolio loans, credit unions familiar with manufactured housing, and or SBA lenders if there’s an operating business component.