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Recently Closed Loan: Mobile Home Park Refinance in Texas

Tags: mobile home park financing, park owned homes
Thursday, Mar 21, 2019
by Jeff Meierhofer

Summary:  The Madison Group (TMG), a leading source of Mobile Home Park financing nationwide, arranged the $2,500,000  refinance for a Mobile Home Park in Lindale, TX. The borrowers goals were to refinance out of their high interest rate private note and take some cash out for improvements. 

The challenge to source financing for this property was the park had 100% park owned homes. Most lenders will not utilize the income from the POH and primarily count pad rental only.

TMG, through its strong network and experience with this type of collateral, secured a loan option for the borrower with an interest rate that was suitable for this type property.  This loan increased the borrowers cash flow immensely and provided a 5 year fixed loan with a 30 year amortization. The borrower was able to get a larger loan amount with a higher LTV allowing him more cash out. 

Location: Texas
Property: Mobile Home Park
Loan Amount: $2,500,000
Interest Rate: 7%
Term: 5-Year
Amortization: 30-Year
Prepayment: 3.2.2.1.1
LTV:  77%