Mobile Home Park Loans

Mobile and Manufactured Home Park Loans

What is a mobile/manufactured home park loan?

Mobile home park financing covers commercial mortgages found under a set of properties that include combination mobile home park and RV park as well as seasonal parks. If you have a manufactured homes placed in a park setting, you are also eligible for commercial mortgages. 

In this situation, you will lease the land for your home from the park owner. Any owners of a mobile home park can secure a loan against the land under their homes including common areas as well the structures built on the common areas.

If you are seeking a mobile home park owner financing, use the Lender Search above to enter all of the particulars of your scenario, including how many units and particular type of park. If you seek a mobile home park construction loan, use the Construction Lender Search Engine to find the right lender.

Mobile home park financing can be used to:

  • Purchase an existing mobile home park or manufactured home park

  • Refinance the expiring term with a new rate and term

  • Refinance to get a cash-out mortgage for improvements and repairs

  • Get a cash-out second mortgage with the proceeds used to avoid foreclosure on the first mortgage

  • Acquire the land and develop it into a mobile home park

What are some of the most common types of mobile/manufactured home park mortgages?

  • SBA 7(a) loan from a bank at up to 75% LTV for purchase, refinance or start-up

  • Private cash-out refinance at 65% LTV, 12% interest, 3 points and a 12 to 24-month term

  • $200K to $10M loan funded in 5 to 7 days after LOI is signed

  • Stated income, no points, 30-year amortization at 75% LTV up to $5M loan amount

  • 15-year mortgage with mobile home park financing rates starting at 8.5%

  • Purchase of a distressed property

  • Rehab mortgage up to 75% LTV and up to 90% LTC to reposition the park in the market

 

How do I finance a mobile home park?

Many lenders offer RV Park financing because they consider this property type to be excellent collateral when writing a mortgage for purchase or refinance. Such properties generate cash flow and assure repayment. Even if the property is not bringing in a consistent flow of revenue, several lenders will finance the rehabilitation of the property to stabilize cash flow.

You can use the Lender Search above to enter the particulars of the mobile home park loan you are seeking. Once you see search results, click on the “Contact” button on a lender listing to provide them with the particulars you searched, as well as your contact information.

As a mobile home park or manufactured park owner, you can use a commercial mortgage broker to find the lender that can service their specific needs. All of the lenders on our site will work with mortgage brokers to fund a mobile or manufactured home park mortgage.

What are hard money loans for manufactured mobile home park?

If you are looking for a mobile home park loan, hard money loans can offer some benefits. These loans offer fast funding at lower LTVs and typically require less documentation than a bank. 

Mobile home park hard money loans can close quickly. This is because instead of relying on extensive documentation of the borrower and the property, the property has sufficient unencumbered value. This will ensure the lender that in case a foreclosure sale becomes necessary; it will recoup the unpaid principal. 

There are other drawbacks to hard money loans, including higher interest rates, often starting at 8%, and short-term repayment periods. However, you can use these loans when there is a pressing need like a repair of infrastructure that requires immediate attention.

Which lenders offer manufactured and mobile home park mortgages?

Due to their ability to generate positive cash flow, mobile home parks are attractive to many lenders. Banks and credit unions offer low rates and attractive mobile home park financing terms, but generally fund the parks in the best condition, with the most credit-worthy owners. 

Non-banks and private lenders offer more flexibility in their loan programs, underwriting and terms so they can serve borrowers with less conventional loan scenarios.

Enter the characteristics of your mobile home park or manufactured home park loan scenario into the Lender Search above to see a list of lenders that can meet your specific needs. All of the lenders on this site will work with mortgage brokers to get a mortgage for their clients.

 

Loans over $1 million:

  • Up to 80% loan to purchase and value. Up to 75% for cash out and refinance on most California mobile home park loans.

  • Loan terms of: 5, 7, 10, 12-years.

  • Amortizations normally, 30-years with some interest only periods available from case to case.

  • Interest rates are very competitive and are subject to change daily. As a general rule the interest rates run about 10 basis points higher than the same rate for Apartment loans.  So if the rate on the apartment loan is 4.50%, the rate for the same loan terms for a mobile home park would be about 4.60%.  See our Current Loan Rates.  Most loans go up or down with the “Like Term” SWAP or US Treasury.  We use Bloomberg as our daily source for US Treasury Rates.

  • For stabilized properties non-recourse loan terms are available.