Mobile Home Park Financing/Manufactured Housing Community Loans

With the lowest long term fixed rate mobile home park financing since 1997, Apartment Loan Store has 6 mobile home park loan programs for manufactured housing communities. Find the mobile home park loan that is right for you.

Our experienced mobile home park financing specialists will analyze the quality, location, services, and number of park owner owned homes to determine which loan program is the best fit for you. Based on your long or short term strategy for the property we can customize the fixed rate term from 5 to 30 years.

 

Manufactured Housing Community Loan Programs

 

1.  Fannie Mae Mobile Home Park Loan Guidlines

• Class A and B Parks only (see categories below)
• Minimum Loan Amount $1,000,000
• Minimum 50 pads near moderate size cities preferred
• Mostly double wides or tripple wides required
• No more than 25% park owner owned homes allowed
• Fixed rate 5 - 30 years with a 30 year amortization, 1.25 DSCR
• 75% LTV for Refinances, Up to 80% LTV for purchases
• Non-Recourse with standard carveouts
• Sublimental Financing from Fannie Mae allowed
• Cash Out Allowed
• Loan is Assumable
• 680 Minimum Credit Score
• No tax returns required

 

2. Freddie Mac Manufactured Housing Community Loan Guidelines

• Class A and B Parks only (see categories below). 
• Minimum Loan Amount $1,000,000
• Minimum 5 pads required
• Fixed Rates and terms up to 10 years. Some Interest Only available.
• 75% Maximum LTV, 1.25 Minimum DSCR
• No more than 25% park owner owned homes allowed. Leases cannot contain options to purchase pad site or park owner owned homes.
• Rural and non-metro locations preferred
• Private wells and septic systems allowed
• Non-recourse with standard carveouts.
• Sublimental Financing from Freddie Mac allowed
• Cash Out Allowed
• Loan is Assumable
• 660 Minimum Credit Score
• No tax returns required

 

3.  HUD/FHA Manufactured Housing Community Construction Loan

• Class A and B Parks only
• For the construction and major rehabilitation of Manufactured Housing Communities.
• Minimum Loan $3,000,000
• Up to 90% of Appraised Value
• Semi-Rural and Non-Rural Locations
• 40 year fixed rate term and amortization
• Non-Recourse with standard carveouts.
• Loan is Assumable
• Good Credit is required. No minimum score is specified
• No Tax Returns Required

 

4.  Securitized Manufactured Housing Community Loan Program

• Minimum Loan Amount $2,000,000
• Maximum Loan to Value 75%
• Class A and B and some C parks (see categories below)
• Minimum 50 pads
• Usually no more than 10% park owner owned homes allowed
• Maximum of 10% RV occupied spaces
• 5 and 10 year fixed rate terms, 30 year amortization
• Minimum DSCR 1.25 to 1.35 based on trailing 12 month Profit and Loss
• Non-Recourse
• Minimum Occupancy Required – 90%
• Cash Out Allowed
• Loan is Assumable
• 660 Minimum Credit Score Required
• No Tax Returns Required

 

5. Regional Bank Mobile Home Park Loan Program

• Minimum Loan Amount $500,000
• Class A, B, C and some D parks ok (see categories below)
• Maximum Loan to Value: 75%
• No more than 10% park owner owned homes
• Minimum 15 pads
• Minimum DSCR 1.20 – 1.25
• Recourse
• 90% occupancy required
• Loan may be assumable
• 680 – 700 minimum credit score required
• 3 YearsTax Returns Required

 

6. Bridge Loan Mobile Home Park Loan Program

• For Parks that are not fully stabilized, have less than 85% occupancy, need some improvements or rehabilitation, or for borrowers who have lower credit scores. Call one of our friendly loan specialists to find out more about this program.

 

The Quality of the Park and Your Mobile Home Park Loan

 

Mobile home parks are often spoken of as rated with stars from one to five stars.  Because there is not a rating agency in the United States that evaluates mobile home parks for quality and gives them a star rating, this is somewhat of a myth rather than based on reality. At Apartment Loan Store we categorize mobile home parks into 4 groups based on the general quality and amenities of the park:

 

Manufactured Home Community Categories

 

CLASS A: These parks are manufactured housing communities that look like good residential neighborhoods with exceptional landscaping. Over 90% of the homes are owned by the residents – all of the homes are double and tripple wides set back from the street, there are curbs and gutters, paved roads, underground utilites, manicured lawns, good road lighting, usually city water and sewer. Furthermore, the pads have good landscaping, often a comunity activity building, a swimming pool and playground.

 

CLASS B: These manufactured housing communities usually have about 90% of resident owned homes which are almost all double wides or larger with moderate quality landscaping. They have paved roads, underground utiliies, good road lighting, city water and sewer, or private sewage system, and there might be some amenities such as a swimming pool or playground.  These parks have absolutely no clutter in thier yards.

 

CLASS C: These parks have 10% - 20% park owned homes, are usually 50% or more single wides, 50% or less double wides; usually, but not always, have paved roads, have steet lighting, likely have above ground utilities and may have city water and sewer, or have a private sewer system. Residents mostly have no clutter in their yards.

 

CLASS D: These parks usually have almost all old single wides, and a majority of park owned homes which lack the pride of home ownership since they are rented. There is almost always gravel roads, above ground utilities, city water and sewer or a private sewer system, poor quality landscaping if any and clutter in many of the yards.