Financing Without W2 Income

​I am in the process of looking for my first MHP deal (or looking to partner!). I currently have a W2 income; however I am considering a career switch to better utilize my RE license but I’ll lose my W2 income and stable salary. Any recommendations on whether or not I should wait to do this until after I secure financing and close on a park?

Wondering if for a commercial loan having consistent W2 income matters as much as the actual numbers on the park and capital to put down.
Thanks,

I recently spoke with a local lender about financing MHP’s. He made it sound like his bank mostly focuses on the strength of the deal, but they do also underwrite the borrower(s) as well. I think these smaller banks all have different rules and criteria but this seems to be pretty common that both the deal and, to a smaller extent, the borrower must check out. So that could pose a problem if you give up your W2 altogether. Perhaps if your new employment (or self-employment) is something you’ve been doing to a lesser degree for a while they will cut you some slack. But I wouldn’t want to go “Ready, fire, aim” on something like that. Talk to 3 or 4 local banks (banks that have done MHP loans in the past) and get their take on it before you jump ship.

Good luck!

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Keep the job. They ask for your personal income sources if you personally guarantee the loan, especially on your first park. Best of luck. Welcome to the world of park owners.

A recourse bank loan is going to require a W2. A non-recourse (CMBS, FNMA, Freddie) look more at the asset. The other option would be to get seller financing.