Loan Approval - Your thoughts?

We just received approval for a loan on a turnaround park. The park is 90% occupied but will need considerable cleanup, some evictions, new rules, etc.

The loan amount is $475K at 75/25 LTV. We shopped around a bit and this was the best we received:

20 year amoritization with a 10 year term at a rate of 5.00% fixed, then adjusting each
consecutive ten (10) years to the then applicable 10 year ICE swap
rate + 300bps.

We felt good about the load but was hoping to get some feedback from others. Thoughts?

Thanks in advance for your input.


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Is it through a local bank? Our most recent 5 loans in the last 2 months were with local banks and in the low 4s.

Yes, small local bank. They offered 4.5 at 5 year lock, 4.75 at 7 year lock and 5 at 10 year. We opted for the 10. The other banks we contacted offered 4.75 or 5 but only at 5 year lock.

These sound like reasonable loan terms given today’s environment. Actually pretty good loan terms, IMO. You can’t predict the future but a 10-year lock at 5% is pretty good. Assuming you will be holding for 10 years.

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Thanks for the feedback. Yes, our strategy is to buy and hold so we were looking for the 10 year lock. Was hoping for 25 year am but no one would offer it. We could have co tinued shopping the deal but figured this was good enough and the bank has been easy to work with. Always curious what others are seeing though.

Looks like good loan terms to me. What state is the park in?

Thank you. The park is in Pennsylvania.

I’m guessing this was a recourse loan, correct? Thanks!

Correct, recourse loan.

Has anyone else been successful in getting terms like jo13nathan on recent loans?
20 yr amm, 10 year fixed, at 5%?
On a borrowed amount less than $1m?

I got these terms on a 5 year fixed loan earlier this year. Under 500K. Small local bank, shopped it hard.

Thank you jhutson.

Anyone else out there been successful lately in securing a 20 year amm with 10 year fixed loan?

I’ve not seen any local banks willing to do a 10 year fixed loan. We recently closed a loan with a 5 year fixed, 4.4%, 20 year amortization.

I have to agree with you Rob. I can get a 5 year balloon all day long but no local banks are interested in a 10 year fixed period.

Jo13nathan, you must be living right. I think you were very fortunate to secure those terms on your loan. Good for you!

Just came across a small midwest bank that will do 6% 20yr fixed and 5.75% 10yr fixed… Yes, that makes no sense I’m aware. 30% down. 2nd lien possible.

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Those are certainly very unique terms.

Thank you mhp.


Our other park was seller financed so this was actually our first time acquiring a bank loan. I’ve read the horror stories and I believe them, however, we had a great experience. Truthfully, acquiring this loan was considerably easier than the home mortgage process I just went through. I got a listing of all the local community or regional banks and just started calling. We received two committments out of 10 banks contacted. We stopped there because we felt good about the two offers. we also contacted loan brokers with less favorable results.

With our small loan, we needed a local bank and found out that some of the local banks are already loaning on Mobile Home Parks and were very interested. We also had another local bank visit the park but turned us down because they felt the park was basically…a dump. Well…it basically is. Appraisal came in $20,000 higher than the purchase price and from there, things fell into place quite easily.

Deals are still out there. Financing is still out there. Roll up your sleeves and start calling.

Best Wishes!