About Mobile Home Park Loan Rates
At Apartment Loan Store, we have been lending on Mobile Home Parks since 1997 and have 6 Manufactured Housing Community Loan Programs for you to choose from. Loans start at $1,000,000. Please call one of our friendly loan specialists to get pre-qualitied today. For today’s 10 year treasury yield go to: https://www.cnbc.com/quotes/?symbol=US10Y
For more detail on our mobile loan park loan programs go to:
1. Fannie Mae Mobile Home Park Loan – Rates can be fixed from 5 to 30 years and are tied to corresponding US Treasury Yields with spreads of 2.20% to 2.60% over the 10 year treasury yield on a 10 year fixed, 10 year term, 30 year amortization mortgage. These loans require a minimum of 50 pads and cannot have more than 25% park owned homes. Loan may be non-recourse and is assumable.
2. Freddie Mac Mobile Home Park Loan – Rates ca be fixed from 5 – 10 years and are tied to corresponding US Treasury Yields with spreads of 2.45% – 2.85% over the 10 year treasury yield for a 10 year fixed, 10 year term, 30 year amortization mortgage. Cannot have more than 25% park owned homes. Loan may be non-recourse and is assumable.
3. CMBS Loan Mobile Home Park Loan – This is a securitized loan program. Rates can be fixed for 5 or 10 years with corresponding loan terms and 30 year amortizations. Rates on the 10 year fixed mortgage have spreads of 2.45% to 2.75% over the 10 year US Treasury Yield. Up to 20% park owned homes allowed. Loan is non-recourse and is assumable.
4. Regional Bank Mobile Home Park Loan – Rates can be fixed from 3 to 10 years and are tied to corresponding US Treasury Yields with corresponding terms and a 25 to 30 year amortization. Spreads range from 2.45% to 2.75% over the corresponding treasury yield. 10% to 15% park owned homes allowed. Mortgage is recourse and may be assumable.
5. Community Bank Mobile Home Park Loan – Rates are usually fixed for 3 – 5 years with a 10 year term and are tied to Federal Home Loan Rates. Amortizations range from 15 to 20 years. Mortgage is recourse and is not assumable. 25% or more park owned homes allowed.
6. Bridge or Hard Money Mobile Home Park Loan – Rates are fixed from 1 – 3 years and are tied to the 30 day libor rate plus 6.00% to 10.00%. This loan program is for investors with poor credit or for mobile home parks that are not stabilized (have low occupancy). Loan is recourse and not assumable.
Why Do Park Owned Homes Matter For Mobile Home Park Financing?
Did you know that lenders who make loans on mobile home parks prefer 10% or fewer park owned homes (homes owned by the park owner). This is mostly because of the difference between tenants of the park that own their own manufactured homes and tenants that are leasing both the pad and the home. The first, having a pride of home ownership, staying for 5 years or longer, and keeping their homes and yard in great condition. The latter, renting the mobile home may stay for less than a year, have junk and old cars in their yards and may do little to maintain the home and landscaping.
Mobile home park lenders also know that park owned homes have a much higher incidence of late paying or no paying residents, and much higher domestic problems resulting in tenants nearby being unhappy and sometimes moving out. In most mobile home parks, the park is in first position on the home above the mortgage in the case that the tenant stops paying the pad rent. Yes, the homeowner can lose their home to the mobile home park if they are often in default for more than one month. Therefore they have a large incentive to pay their rent on time.
By Terry Painter/President Apartment Loan Store and Business Loan Store