Getting financing on small MHP

Hello. Just wondering if anyone may have had a similar situation and if so how it worked out:Six years ago I purchased a small park (7 sites) for cash. It is on 8 acres and was being sold at the time “highest and best” as single family development land. I retained the property as a MHP, and I now net around $15,500. counting just lot rents.0 homes park owned.  As development land it is valued at about $80,000.  As an  income producing property obviously more.   I do not have significant cash at this time but would like to purchase another park. Has anyone been able to finance a MHP using another income producing property as collateral in leiu of a significant cash down payment? My credit is excellent and my income is sufficient for my lifestyle (my bills are low and I own my house and other properties  free and clear) but it is not very high intentionally ( I defer income, reinvest it etc)I have been looking at a MHP with 20 lots, 16 filled @$175 (below market)., on 5 acres ( it would immediately net $28,000). The asking is $180,000. but I’m sure they would do better. I would like  to make an offer but  I don’t see the point if I could not be financed. Between the income on both the parks the loan would be super safe , a no-brainer, but do the banks see things that way?    To me this loan would make lending on any owner occuppied single family residence plain foolish in comparison.    Is my situation hopeless when it comes to getting financing? Any suggestions?

I think I would try asking the seller to finance it in this case.  You may be able to work a scenario out with him that allows you to buy the park.  However, I don’t see the bank lending on something like this under the terms you are describing. A third option would be to find a private lender to lend you the equity portion of the deal.  This could be family, friends, or someone (accredited investor) who becomes interested after you tell them what you are doing.  This is probably the best option you have for what you are trying to do.  A fourth, and not so great option, would be to get a HELOC against your home and use that as a downpayment.

Borrow against your house.  Whatever bank lends on your house should also be willing to lend on the MHP.  A small deal like this will only appeal to a super-small local bank.  But there are more of those than you think.  Just go through the yellow pages.  The seller will also probably have to carry a note (either in full, or subordinate to the bank loan).You might also join your local REIA where you may find a loan shark, er, I mean a ‘hard money lender’ willing to provide the debt, which you should be able to pay back fully fairly quickly.Let us know how it turns out,-jl-