About to make an offer on a park in Texas, possibly around $800,000. What are interest rates running with the major MHP lenders? Terms/length of loan?
This is too small a deal for “major MHP lenders.” Your best bet is to try to get seller financing, and next best is a local bank (especially the one where the seller is parking the rents). The local bank rates now are in the 4.5% to 4.75% with 75% LTV and 5 to 7 year term on 20 to 30 year amortization. Let us know what you found.
Security Mortgage Group will do $500K+ loans. Frank recommends them in other threads - would call them first as they understand MHP’s. And agree Owner Financing would be good if the loan and terms are competitive. Last resort investing a bunch of time peppering local banks to see who is interested.
SMG still doesn’t have non-recourse relationships sub ~$1.5mm though right?
I just closed a deal last week and had very strong proposals from a number of local banks.
I got this from a local bank in the Wichita Metro Area, Kansas…
- 76% LTV
- $326,800 fixed @ 4.65% for 60 mths (balloon) based on a amortized term of 180 months with a $500.00 origination fee.
I posted on another thread but I got 80% LTV, 4.125%, 5yr fixed but 25yr ARM (pegged to federal home loan bank post 5 yrs), 25yr am, $2k orig fee on $500k loan, and bank considered subordinated seller carry equity. MN park.