What You
Should Know
About
Mobile Home
Park
Financing
Seller Financing: Flexibility
with Potential Trade-offs
Seller financing is one of the most flexible options
available. It is also known as owner financing or a
“seller note.” This arrangement is where the
seller provides the financing for the buyer, usually
making it an ideal choice for folks with limited
access to traditional loans. The terms of seller
financing are usually negotiable, offering more
flexibility than conventional loans.
Local Banks and Credit
Unions: Personalized
Service with Higher Rates
Community banks and credit unions are local
financial institutions. They often provide
commercial loans tailored for mobile park home
acquisitions. These lenders focus on their local
markets, offering personalized services to
borrowers within their geographic area. Local
banks are much more accommodating when it
comes to properties with a higher percentage of
park-owned properties, charging lower loan fees.
National and Regional
Banks: Larger Loans with
Potential Risks
Regional and national banks offer much more
comprehensive loan terms ranging from 10 to 30
years with competitive interest rates and LTV
ratios between 65% and 80%. These institutions
can provide larger loan amounts, making them
suitable for larger projects. They also have
experienced mobile home park financing
professionals to guide you through the process.
Conduit Lending: Ideal for
Large Developments
Conduit lending is the best mobile home park
financing for substantial developments. This
financing method incorporates bundling several
loans into securities that are sold to investors,
usually resulting in more competitive interest
rates. Conduit loans are typically non-recourse.
This means your personal liability will be limited
in case of a default.
Agency Financing:
Favorable Terms with
Stringent Criteria
Government-sponsored entities like Freddie Mac
and Fannie Mae offer agency loans designed for
multifamily housing projects. These projects also
include mobile home parks. These loans are
recognized for their favorable terms, such as nonrecourse agreements, competitive rates, and
flexible fixed-rate periods.
Thank You
Visit:ALT Financial Network Inc