Mobile home park loan
Mobile home park loans are very popular in countries like United States and are provided for the purpose financing or refinancing of mobile home parks. There are different types of lenders offering these loans. It has been generally seen that mobile home park loans are offered by those lenders that specialize in offering multifamily loans also.
These loans can be divided into two general categories. These are ARM Loans and Conduit Loans. In ARM category, mobile home park loans are offered as traditional 30 year fixed rate amortized loans. After the lapse of fixed period, these are converted into adjustable rate mortgages and allow for step down prepayment penalties.
In second category, i.e. conduit loans, after the fixed rate period is over, balloon payments have to be made by the borrower and allow for maintenance type prepayment penalties. In case of ARM, fixed rate period allowed is 3, 5, 7 and 10 years. However, some banks also offer 15 year fixed initial period. As said above also, prepayment penalties step down or get reduced over the holding period. Typical step down comprises 3, 2, 1 and 1. Conduit mobile home park loan has got its name from selling large pools of mortgages. These are meant for institutional investors. There are more rigid requirements attached with these loans in terms of location and quality of park, amenities offered, size of park, debt coverage ration, loan to value etc.
There are some lenders that have limited the minimum amount that can be obtained as loan. In most of cases, it is $2 million. It is important to understand here that conduit mobile home park loans are offered with high closing costs. Since balloon payment is required at the end of loan term, borrowers can easily know about the payback schedule. Through defeasance or yield maintenance early payment penalties enforcement, rate of return on the investment made can also be controlled in these types of mobile home park loans. Original returns are guaranteed to investors through charging of penalty equity to difference with respect to reinvestment of money in the fixed period, in case, rates are lower and refinance is needed. If both options regarding mobile home park loans are seen, it is inferred that ARM loans offer finite prepayment penalties and fixed rates. Also, these loans are easier to qualify. Apart from this, banks also hold this type of loan as part of their portfolios. If interest rates are compared, conduit loans are offered at low rates and in most of cases, interest rate difference varies from 0.25-0.4%. In conduit mobile home park loans, prepayment penalties are less predictable.
Some lenders
Let us discuss some lenders of mobile home park loans in United States to understand more. NMB Capital is one of leading providers of mobile home park loans. Other loans provided by this source include apartment loans, hotel loans, etc. NMB is one of leaders in offering mobile home park loans. Minimum and maximum amounts offered are $500000 and $100000000 respectively. Loan amount depends upon the range of investment. It is tried to offer best solutions through private banking approach. Funding channels include conduits, banks, REIT, insurance companies, etc. There are many striking features of mobile home park lenders offered by this source. These include no lender points, low fees, broken earn yield, 30 day closing, etc. For getting more information, a person can easily call at 561-840-8701 or at the toll free number 877-300-9995.
Mobilehomeparkstore.com is one online source that offers mobile home park loans in United States. In fact, a person can get the most accommodating and diverse financing option at this source. Loans for manufactured home communities are also available. Refinancing options are also available. Loan amount is financed through credit unions, banks, mortgage bankers, hard money lenders, private money lenders, mortgage brokers etc. A person can easily call at 1-800-950-1364 for getting more information about lending network. It is tried to offer best interest rates and loan to values to borrowers.
There are many options available. For example, a person can go for general loan program that offers minimum and maximum loan amounts of $400000 and $2000000. Maximum LTV is 75% and rate charged is 2.5% more than prime rate. Loans are offered at floating rates and coverage ration required varies from 1.25 to 1.35. It is required that borrower has experience in real estate management. In small balance loan program, minimum and maximum amounts offered as loan are $100000 and $400000 respectively. Maximum loan to value allowed is 60%. Amortization period allowed is 25 years. Interest rate charged is 5.5% over prime. However, fixed rates are also available. In mid-balance loan option, minimum and maximum loan amounts offered are $1000000 and $5000000 respectively. Maximum loan to value allowed is 75% and amortization period available is 30 years. Interest rate charged is 7.25%.
Commercialmortgageloan.net is another source that can be contacted for getting mobile home park loans in United States. It has been offering services since 1977 and has extensive experience in offering above types of loans. Tailored financial solutions are offered for meeting the exact needs of borrower. Flexibility is offered in terms of size of community, credit rating of borrower, age etc. Even loans are offered for communities that have pre-code homes. Customized solutions are offered for all types of investors across the nation. Borrowers with all objectives can approach this lender for fulfilling requirements. This lender can be contacted at 1-800-595-1474.
Similarly, CommercialBanc is another source offering mobile home park loans in United States. Permanent financing for mobile home parks is offered at low fixed rates. Loans are provided to housing properties that have minimum 50 sites of pads. Minimum loan amount is $1 million and pricing is based upon LTV and DSCR. Loan term offered is 5-20 years with 25-30 year amortization. Maximum LTV is 75-80% and minimum DSCR requirement is 1.25. This source has been offering services since 1988.
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