We are in the stages of securing bank financing for a smaller park (41 spaces). Has anyone had success getting financed through a bank without the tax returns?
Daneespegard, we received 3 Commitment Letters from 3 Local Banks for a Local MHP with 65 spaces.All 3 Local Banks needed our Tax Returns before they would even process our Loans.We wish you the very best!
It is not that easy to get bank financing from local banks. I had called a dozen banks and none of them even understood what MHP was. We reached out to the seller’s broker and he pointed us out to 3 banks (within the same State) and all 3 approved. So one way would be to ask a broker who focuses on MHPs to help you with the lenders.
Here’s an easy formula: If the loan is $500,000 and up, use Security Mortgage Group as loan brokers to get your loan. We have been using them for 20 years and they have never failed to get it, not once. If your loan is under $500,000, hit all of the local banks. At least they know the market well. Some will require tax returns and some will not (but they all prefer them). In 20 years, we have never had to walk a deal due to lack of financing (but a lot of deals have been dropped due to due diligence concerns).
Frank,Unless Security Mortgage has changed their loan approval structure, they rejected a fine property under $1M and said they would be interested only in >$1M loans. Someone can verify with them and update here.
DallasMHP, I agree with you that a lot of Banks: “do not even understand what a MHP is”.The Bank has to know about MHPs, feel secure in MHPs and be willing to loan on MHPs. Thankfully, one of the Bank’s Loan Officers’ Father-In-Law owned a local MHP, so he was totally fine with MHPs and went to bat for us to get a loan on a local MHP. He was also able to get us the best deal, so we went with him and his Bank.I also talked to another Bank (more of a Regional Bank) and the Loan Officer was super nice. Unfortunately, that particular Bank just did not give out loans on MHPs.Asking a Real Estate Broker who deals in MHPs is a great suggestion.If you still can not find a Bank, hit the pavement and just keep knocking on Bank Doors.We wish you the very best!