Like you both were referring to, yes there are some good government loans that can be used to construct a new park or rehab an existing park. Here are some details below for those of you who don’t know.
First off it is the HUD FHA 207M program are for construction and rehab of parks, and they can’t be used on the homes, only the infrastructure and amenities. Also they are a pain to get, like best case scenario is 8 months from start to actual funding, and lastly it better be for a big project. The fees are pretty high, so I wouldn’t try unless you are spending over $2M because you are wasting your time and money, however the terms are pretty good. The amort is over 40 years, the interest rate is just slightly above the gov’t interest rate, and you can do a 90% LTV. During the rehab or construction period the loan is interest only although with such a long amort and high LVT it won’t save you a ton.
The last one I heard being funded(from Eddie Hicks when I talked to him) with the program was for $40M in the coast of SC if I’m not mistaken. Each had to be a doublewide, so a lot of land was needed and the all had permenant carports. I think it was something like a 500 unit park, but I am sure lot rent was pretty high. Anywho it is not for the faint of heart.
Also the USDA has a similar program that can be 90%LTV (97% LTV if you’re a non profit), 40 year amort, however it is only available for rural areas, and doesn’t go by the USDA eligibility map. It has some very tight restrictions for rural areas in this program, but certainly is an option.
Either one you are dealing with the government, so many of those employees don’t get investing or MHPs, so it can be hard to go through the process to convince them, and in some cases you go through the process and don’t get funded at all. In many cases the people who could get the loan could have private investors at their disposal, so they don’t need the programs or the headache.