Mobile Home Parks – Loan Underwriting Guidelines
Please incorporate the below minimum guidelines when you prepare and submit your proforma for underwriting approval:
Rental Income: | Based upon current rent roll annualized with vacant space calculated at market rents | |
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(+) | Other Income: | Must be supported by historical collections |
(-) | Vacancy: | Equal to the greater of the actual or a minimum of 10% |
(-) | Management Fee: | Equal to the greater of the actual management fee of 5% |
(-) | Operating Expenses: | Should be supported by detailed previous year and current year to date expenses |
(-) | Capital Reserves: | Minimum of 4% of total income, depending upon property age and condition |
Equals: | Net operating income |