Commercial Mortgage Mobile Home Loan
Mobile home parks have some uniquely attractive attributes, but one of the most appealing is the many different financing options available to buy a mobile home park. You will find more creative financing options in mobile home park investing than in all the other sectors of real estate combined. And this allows new investors to enter the business with lower risk and less hassle, as well as seasoned investors to take advantage of some extremely attractive structures.
commercial mortgage mobile home loan
Work with the top commercial mortgage broker in the industry offering highly competitive financing for all income producing real estate assets nationwide. Whether you are looking to acquire, improve, cash out, or refinance, our lenders will have the most competitive rates and terms.
Mobile home park finance options range from a traditional loan for mobile home park purchase to financing a mobile home park rehab, financing mobile home park with cash-out, and even mobile home park model financing.
Commercial mortgage-backed securities (CMBS) are a type of asset-backed security. CMBS are bonds that are securitized from a pool of commercial mortgages. The payments from the underlying mortgages are used to pay the interest and principal on the bonds. CMBS are typically high-yield, and therefore, are popular with investors looking for income-producing investments.
A bridge loan is a type of short-term loan that is used to cover the gap between the purchase of a new home and the sale of the old one. Bridge loans are typically used by people who are unable to get a traditional loan from a bank.
Bridge loans are typically for a short period of time, usually six months or less. They are also usually for a smaller amount of money than a traditional mortgage. Bridge loans are usually interest-only, which means that you only have to pay interest on the loan each month.
The acquisition loan is a type of mortgage that allows you to purchase a mobile home park or other property. The borrower pays the difference between the purchase price of the property and the amount of money they have available to pay for it. An acquisition mortgage generally has little or no down payment involved, so you get 100% financing on your new home.
Clopton Capital is a company that offers mobile home park cash out loans. This type of loan allows you to get cash from the equity in your mobile home park. The loan can be used for any purpose, such as debt consolidation, home repairs, or vacations.
When it comes to financing the construction of a mobile home park, there are a few different options that you can explore. One option is to get a loan from a bank or other lending institution. Another option is to attract investors who will provide the money needed for the project. You can also seek out government grants or funding to help finance the project.
A borrower in a partnership structure was facing a loan maturing with a balloon payment attached to an apartment building in KY. The investor wanted to contain closing costs and was uncertain what to do with the property. Its goal was a mortgage with a fixed rate but did not want any prepayment on the loan in case the partners decided to sell and repay their debt. We found a lender on our exclusive long-term relationship list able to arrange a commercial mortgage with a 5-year fixed rate, 25-year amortization that did not have any prepayment at all starting on day-1. This way our client was protected against rate increases for 5 years with enough latitude over that time-period to figure out if it wanted to sell or keep the property.
Clopton ( ) is a national commercial mortgage broker in the business of matching borrowers involved in multifamily, industrial, commercial, and mixed-use real estate to lenders suited to their needs for asset-backed funding. Needs invariably include purchasing, refinancing, or rehabbing a property. Irrespective of your direction, our commercial mortgage loan officers will connect you to the best commercial loans at the most competitive rates and easiest terms available. We work every day with private investors, small/middle market real estate entities, and family offices everywhere in the US investing through partnerships, trusts, corporations, LLCs, Delaware Corporations, estates, and even as foreign nationals.
Blackburne & Sons, my private money commercial mortgage company, makes a lot of loans on small mobile home parks filled with older single wide trailers. Often these small coaches are not owned by the residents. Instead, these coaches are owned by the the park, and the park rents them out like apartment units.
While they are decent collateral, there are some tricky legal issues associated with making loans on older trailer parks. Today you going to learn a lot about making mobile home park loans, perfecting liens, and bankruptcy law.
Okay, if you are going to make a loan on an apartment building, you simply record a Mortgage and Assignment of Rents against the property, and - voila - you're done. The same is true with a mobile home park, right? Maybe ... but maybe not.
Benjamin L. Kadish, President of Maverick Commercial Mortgage, Inc. says Maverick has underwritten a first mortgage loan for Tri-Star Estates, an 853 pad mobile home park located in Bourbonnais, IL, Kadish said in a press release.
Depending on the type of loan you choose, interest rates could be as low as 2.231%. Government-backed loans such as SBA loans from the Small Business Administration or USDA loans from the Department of Agriculture and conventional commercial mortgages will generally offer the most competitive interest rates and the highest loan-to-value (LTV) ratios.
Buying or building commercial property is a huge undertaking for your business or for yourself as an investor. Be prepared to shop around and negotiate to get the best deal possible. We recommend you start with financial institutions you have a good working relationship with. If you don't have a specific financial institution in mind, start with regional and local banks, credit unions and mortgage lenders since they'll know more about the local market than a national lender.
Obtaining the best rate requires the following criteria to be met: 1) A new home equity line of credit application, 2) A line amount of $200,000 or more, 3) Line must be in first lien position, 4) Having a Citizens consumer checking account, or in the states listed below, any checking account, set up with automatic monthly payment deduction at the time of origination, 5) A loan-to-value (LTV) of 80% or less (85% or less in Michigan), and 6) Strong creditworthiness. In the following states you can get the discount by setting up automatic payments with any checking account: AL, AR, DC, FL, GA, IA, IL, IN, KY, MD, ME, MN, NC, NE, OK, SC, SD, TN, and VA.
Eligible properties include owner-occupied 1- to 4- family properties, condominiums, and 2nd/vacation homes. Ineligible properties include, but are not limited to: investment property (defined as non-owner occupied property), a co-op, mobile home, or manufactured housing. Property must be located in AL, AR, CT, DC, DE, FL, GA, IA, IL, IN, KY, MA, MD, ME, MI, MN, NC, NE, NH, NJ, NY, OH, OK, PA, RI, SC, SD, TN, VA or VT. Rate and terms are subject to change and credit approval. Home equity lines of credit are available in first or second lien positions. Not available for homes currently for sale. Homes previously listed for sale must be off the market for at least ninety days prior to application. Property insurance required. Flood insurance may be required. No annual fee for the first year, then $50 per year thereafter during the Draw Period. Citizens offers Home Equity Lines of Credit as low as $17,500, but terms may vary.
More than a dozen Clayton customers described a consistent array of deceptive practices that locked them into ruinous deals: loan terms that changed abruptly after they paid deposits or prepared land for their new homes; surprise fees tacked on to loans; and pressure to take on excessive payments based on false promises that they could later refinance.
At the time, mobile-home loans had been defaulting at alarming rates, and investors had grown wary of them. Kevin Clayton was seeking a new source of cash to relend to homebuyers. He knew that Berkshire Hathaway, with its perfect bond rating, could provide it as cheaply as anyone. Later that year, Berkshire Hathaway paid $1.7 billion in cash to buy Clayton Homes.
Clayton provided more than half of new mobile-home loans in eight states. In Texas, the number exceeds 70 percent. Clayton has more than 90 percent of the market in Odessa, one of the most expensive places in the country to finance a mobile home.
Clayton dealers often sold homes with no cash down payment. Numerous borrowers said they were persuaded to take on outsized payments by dealers promising that they could later refinance. And the average loan term actually increased from 21 years in 2007 to more than 23 years in 2009, the last time Berkshire disclosed that detail.
A couple of years after moving into their new mobile home, Kirk Ackley was injured in a backhoe rollover. Unable to work, he and his wife urgently needed to refinance the costly 21st Mortgage loan they regretted signing.
Nine Clayton consumers interviewed for this story said they were promised a chance to refinance. In reality, Clayton almost never refinances loans and accounts for well under 1 percent of mobile-home refinancings reported in government data from 2010 to 2013. It made more than one-third of the purchase loans during that period.
In general, owners have difficulty refinancing or selling their mobile homes because few lenders offer such loans. One big reason: Homes are overpriced or depreciate so quickly that they generally are worth less than what the borrower owes, even after years of monthly payments.
Mobile-home buyers who own their land sites may be able to finance their home purchases with real-estate mortgages, which give them more federal and state consumer protections than the other major financing option, a personal-property loan. With conventional home mortgages, companies must wait 120 days before starting foreclosure. In some states, the foreclosure process can take more than a year, giving consumers a chance to save their homes.