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Financing Program for Mobile Home Parks

Loan Amount:$2,000,000 minimum
Loan Term:7 and 10 years
Amortization:25 years; 30 year amortization is available on a case by case basis for higher quality communities
Eligibility:Each community must contain a minimum of 50 sites, of which at least 66% must be able to accommodate double wide homes.
Prepayment:Typically a lock out period followed by either a yield maintenance or defeasance formula or defeasance option
Recourse:Non-recourse, except for standard lender carveouts
Borrower:All properties must be owned by a single asset or single purpose entity.
Debt Service Coverage:Minimum 125%
Loan to Value:Up to 75% of appraised value; LTVs up to 80% will be considered on a case by case basis for higher quality communities
Subordinate Financing:Prohibited
Occupancy:Properties must be 90% physically occupied at loan funding and for the 90 day period prior to commitment
Assumability:Yes, one time right subject to lender approval and the payment of a processing fee and a 1% assumption fee
Reserves:Tax and insurance escrows are required. Replacement reserves and repairs required as determined by the engineer’s report.
Rate Lock:Rates are fixed five to ten days prior to closing
Application Fee:Approximately $20,000 or other such amount determined by the lender to cover the costs of all third party reports (including environmental, building condition and appraisal), travel expenses and other out-of-pocket expenses
Financing Fees:1% of the loan amount
Timing:Commitments issued in 45 days or less
Underwriting Requirement:All final submissions must include an Argus Valuation-DCF data file.If you have not modeled your submitted project in Argus Valuation-DCF, you must engage us or a third party to model your project.  However, on a preliminary basis, please feel free to submit your proforma in any format.