Help!


#1

Koo,

The conduit loans are usually a minimum of $1 million. The financing is fixed for 10 years with a 25 or 30 year amortization. The rate is currently about 6%. Banks (especially conduit loans) do not look favorably upon a large percentage of park owned homes and will discount the income derived from the park owned homes.

I would try to have the previous owner extend the balloon payment from 6 years to 10 years… maybe offer him 9% for the remaining 4 years.

Banks usually will go out 3 to 5 years max with conduit loans going out to 10 years. I do not know of any entity loaning money longer than 10 years.

Corey