Financing: Lease to own = park owned or owner occupied


#1

Hi, I have been force filling and own title to a number of homes…however, we lease to own the homes. Does a bank qualify those homes as park owned or owner occupied?


#2

You can bank on them calling these POH since LTO agreements do not have any intrinsic and marketable value like a mortgage does for a Buyer.


#3

Got it, thanks!

With that, is there a loop hole in starting a new LLC putting the homes in the LLC and then that LLC paying rent to the park?


#4

Sure you can do that, but recommend you evaluate if the benefit is worth the effort - and additional overhead (paperwork) it will create.


#5

The banks are not idiots.