Bank financing - Mobile Home Parks


You can obtain bank financing usually if the mobile home park is:

75% occupied or greater

Debt Coverage ratio of 1.20

I have found it is easier to get local bank financing than from larger national institutions. If the park is in great shape, high occupancy (80%+) and high DCR I would try to pursue a long term loan “conduit financing”. I am currently getting a conduit loan on a MHP that I own and the terms are 6.1% at 10 years fixed, 30 year amortization, non-recourse. It is a little more hoops to qualify and get the loan however your cash flow goes through the roof and you have fixed financing for a long time. :slight_smile:

how big a loan for a mobile home park should be to be the non-recourse loan?