The land (68 acres) is already bought and paid for.
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I am currently in the throws of beginning a new park on a piece of property that held an old dilapidated park that had gone out of business. I am in N.E. Texas.
Well good luck Mac, you are then i the same boat as Doug and I. Maybe we should start a support group :). There are quite a few options out there for you, and if you want to talk, not that I personally am that far down the road with the process, let me know and I can try to help you. PM me your contact info if you want.
Great insight. How can you get information on the non-recourse government sponsored loan? If you could provide me a contact person or telephone number, I would love to get more information. Thank you.
I wasnât going to interject on some of the government sponsored loan comments made awhile back in this post, but since someone is asking for information I might as well correct one statement and add to another. The USDA has not done MHP for some time now, they used to but donât anymore. I do a lot of Community Facilities loans with the USDA so I ask them every year if they are bringing back MHP but as of earlier this year there were no plans. If anyone has different information on the USDA I would like to know what program director they are talking to. This is one of those rare times I would love to be wrong. The USDA unlike most government entities (think HUD here) is an absolute pleasure to work with. I would love to see them bring the MHP program back.
The HUD 207M is one of the few HUD products I do not do so I have not read the regs on the program. However, as with all HUD loans the process will be long (at least 1 year), expensive, and arduous. You will be required to have an annual audit as well, again expensive. Even though HUD can do a 40+ year loans, they tend to cram them down to 30-35. Even though HUD is a Federal program the State law will prevail when it come to the length of the loan and several states have a cap on commercial loan terms of 30 years. Also, I would be surprised if HUD looks at POH favorably , again I havenât read the reg so I am assuming it would be similar to Fannie/Freddie in that respect.
With all of the above said the best GSE programs right now are coming from Fannie and Freddie. The down side is that neither one does construction.
Aubrey
801-599-1878
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@aubmat I had no idea the USDA didnât do mobile home park construction loans. Good to know. I have only seen the USDA multifamily construction program where they specify that you can have âdetachedâ homes, so I knew it was technically possible, but never knew of any projects that were funded or denied.
And to your point, the loan cannot be used for POH purchases, and if you have over a certain percentage POHs they will not fund you, so the intent is to rent the lot only.
Thank you for your insight and detailed information. I have not had much luck with navigating through the Governmental web-sites to actually get to a live person to talk with.
@dbpsu25 Eddie Hicks is your man if you want to go HUD FHA 207(m). PM me if you want his contact info.
Good luck finding anyone to speak to on the GSE websites. HUD/Fannie/Freddie do not lend directly to consumer. You either need a broker that has access to multiple sources that originate and service on behalf of the GSEâs or you need to go one of them yourself. As a broker my preference is obviously biased. However, I think my reasoning is pretty sound. I have some groups that are absolute Rockstars at multi-family, but wouldnât have the first clue how to do a MHP. Not all of the lenders can do small balance (anything under $7.5MM), because it is a separate license. The funny thing about that is that MHP is the same program as multi-family, it is just not as popular so many/most donât even know they can do it. Another reason is just because they can do it doesnât mean that it is a core product so they wonât necessarily have competency in it.
If you are going ground up, need construction dollars, and have a year to wait I agree with Zachary go with someone who knows the product and has done it before. I donât know Eddie but if he has been there done it with the 207m program then that would be a good place to start. If you donât need the construction then I am happy to talk Fannie/Freddie.
BTW Zachary thanks for the additional clarification on GSEâs not lending money for you to purchase POHâs and explaining that there is a max ratio of POH to TOH. Typically the max is 25% POH, and at that level you will need a written plan to reduce it to around 15%.
Hope this helps!
Aubrey
801-599-1878
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Thank you. Yes, I would like Eddie Hicks number. I appreciate your assistance.
Thank you Aubrey for your response. I will keep everyone posted as to what I find out.
Same here. its a grand adventureâŠIve have done the math and am doing the utilities nowâŠ
Awesome, whereâs your park going to be located, and how are you financing the land and the homes?
North east texas. My banker is financing it all, having the appraisel done as a completed project.
Wow, what types of terms, rates, amorts are you getting?
I assume youâve developed before and have an established track record?
Does your banker have any interest in doing something similar in South Carolina?
PS nice work on that!
Eddie has been a great resource thus far. Thanks for the suggestion.
Hi Zach,
Would it be possible to also get Eddie Hicks contact info? My team and I are acquiring and in the process of developing communities so any kind of info on programs like the FHA 207(m) or similar types is greatly appreciated as well.
Iâd also love to get in touch with Ed Hicks if youâre still in touch with him. Thank you! Will
Is this project completed? How has it turned out? Any words of advice?
Iâm not sure we are allowed to post other websites here.
Roderick Knoll, Manufactured Housing Resources Group, has over 20 years of experience with manufactured housing projects, including both land-lease communities and subdivisions. His consulting work focuses on the following: Acquisition and pre-purchase due diligence; Financing for new development, expansion, and/or turn-arounds; Financing for home inventory, lease/option homes, rental homes, and seller-carried notes; Accessing funds from affordable housing programs; Pro-formas; Market studies; and Business plans. He is based out of Louisville, Colorado.