Lending and refinancing criteria

hi

Wondered what the lending criteria are at the moment for financing MHPs or RVPs?

Also wondered what are the criteria on a refinance.

Wondered also if anyone knows of any reputable lenders (i know of Gelt Financial in florida but looking for others to get quotes from. thank you.)

thank you - any info, advice or resources would be warmly received.
best Anthony

Calling a mortgage broker will give you the best information. No one here will know enough to give you info on the best product for you as no one knows the current situation and business plan of your investment. You may need a bridge loan or a stabilized loan but both of those will have different criteria.

thanks Jake, i appreciate that.
If anyone has any company recommendations for MHP and RVP lenders or brokers would be great to hear. Waiting to hear back from Gelt Financial but i am sure there are other many other lenders or brokers.
thanks guys
best Anthony

I can’t speak for long-term debt, but as a bridge lender that loans for purchase & improvements of MHP’s we are at 70%LTC OR 60%LTV, whichever is less for lesser experienced operators and the best is 80%LTC OR 65%LTV for experienced operators. (LTC = loan-to-cost; LTV = loan-to-finished value). Our loans are tied to the land, improvements & solid structures (office, clubhouse, etc.). We do not lend on the homes or RV’s.

Thank you Jake! - please can i ask is there a book / or resources you recommend to us all on bridge lending - i see there are a few books. I am just getting to grips with it (thanks). As investors want to get in with a low down payment wondered is there a way you see that is legal and ethical to share the risk with the seller? (eg them taking a note back). anyway - thank you! Anthony - Still haven’t heard back from Gelt Financial (2nd time i have been in touch so i guess they are busy or don’t do MHPs). - i have the book commercial mortgages 101 - just starting to read - supposed to be very good. thank you again!

Not really sure of any books on bridge lending. As it relates to seller financing - some sellers will be willing some won’t. I can’t really say more than that as it’s deal specific.

@AnthonyGreen
All the Cool guys are named, Anthony. lol.

05/21/2022 Lenders are tightening, Margins are increasing, and Index Rates are going up.

There is a battle between DSCR, Interest Rate, and Loan amount. As the Interest Rate goes up the Loan Amount must go down to support the DSCR.

My advice, If you plan on refinancing or buying do it now.
One of my clients just closed a deal at a 3.55% 10-year fixed! If he were to do that same deal today (they locked the rate in February) It would be 4.875 % or higher.

I am currently doing a Refi on one of my properties.
Here are the criteria;
65% LTV
15-year term
30-year AM
5/5/5
Start Rate 4.43%
Margin 2.5%
Index 5-year CMT
Max 1st Rate adjustment 3%
Max 1nd Rate Adjustment 3%
Broker Fees 1%
Bank Fees 0.375%
3rd parties $12,500
No prepay/No Yield Maint/No Defeasance
MIN DSCR 1.15:1
Qualifying DSCR 1.25:1

Anthony W.

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If your lender does loans in TX can you message me their contact information please?

The lender I mentioned above only works in CA.
What size is your deal? My guy only likes to work with $5MM and up.

Thanks for reply. I am looking for 1.3MM on a cash-out refi. Broker I was talking to had four bank loans and they either had adjustable rate, balloons, prepayment penalties or wanted large cash reserves. I’m pretty conservative and I don’t like adjustable rates etc… I like knowing what my payments are up front without changing them during the loan. I don’t need to refinance right now so I guess I’ll wait it out for a while. Thanks for taking time to answer. I appreciate it.

For a loan that size I would be happy with a 5/5 25-year am. 10-year balloon. 5-CMT is going up so you are looking at about 5-5.5% (July 2022). Most likely you will be working with a bank or CU.

Banks/CU are definitely getting nervous right now. I am working on a cashout REFI. The appraisal came in $500K over estimates but the lender is unwilling to extend the loan terms to the initial 65% LTV per the LOI. They are also triple verifying my reserves. Now they want to do a $600k hold back due to some slow payers related to Covid. Ugg. I should have done the loan a year ago.

If you want a 10-year fixed the best options I have seen are Agency or Conduit. At that loan amount, the costs would be hard to justify.

Try Mike 415-902-5479

Thanks I’ll give him a call. Never hurts to make a new contact, right?

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Jsmith, I am a Capital Markets professional and would be more than happy to help you connect with the right lenders that could offer the kind of financing you are looking for. My email is jhouse@greysteel.com.

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Hi, I’m a commercial mortgage broker and work with both national lenders and local banks for small balance (sub $1mm) mobile home park loans. Feel free to contact me to discuss in further detail. Thanks, Drew drew@heroldfinancial.com