Financing Question?


#1

Hi all,

I found a great park. Turn-key, which is exactly what I was looking for. I was very excited until today when I spoke to the bank.

I have over 20% down and the broker I’m dealing with told me that I am approved as stated. Only problem is the options he is giving me don’t sound 2 appealing to me.

This is my first Park so maybe these terms are the norm. I’m hoping one of u guys can either put my doubts to rest, or point me in the direction of a better deal.

Here are the choices I was given.

  1. 6 month arm at 8.99% with a 2 cap per year and 6 cap over life of loan

  2. 2 year fixed at 10.89 same caps

  3. 5 year fixed at 11.25% same caps.

All choices were amortized overe 30 years.

Are these rates Ok or should I keep shopping around?

Any suggestions are totally appreciated.

Thanks

Pablo


#2

Those rates are horrible if you have a good park. Try contacting the lenders listed under Great Links or Connections of this web page


#3

Pablo:

Rates seem out of line but in order to put togather some numbers alot more questions need to be answered. Location of Park? Any Park Owned Homes? Current rent roll? Last 3 yr P&L’s? Your personal credit score and DTI? Do you have it under contract? Ever owned a MHP before? Any deferred maintenance? These are just a few things to consider. If you are serious and would like some help call 877-346-4276.

Finance Guy

Don Wilson (OK)


#4

When you are comparing ARMs, always look at the index and margin. This allows you to compare one ARM to another. Just looking at rate and caps doesn’t really tell you that much. Also, can you pre-pay the loan (should you desire to do so) or is there a lock-out period? If I ever sell my downleg and get into someplace, I intend to pre-pay the loan. Doing so can quickly decrease your minimum payment.

Rolf